Klingshirn Corporation Is a Service Company That Measures Its Output

Essay

Klingshirn Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for December.
When the company prepared its planning budget at the beginning of December, it assumed that 25 customers would have been served. However, 23 customers were actually served during December.
Required:
Prepare a performance report showing the company's activity and revenue and spending variances for December. Indicate in each case whether the variance is favorable (F) or unfavorable (U).