Carlino Corporation Is an Oil Well Service Company That Measures

Essay

Carlino Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for April.
When the company prepared its planning budget at the beginning of April, it assumed that 24 wells would have been serviced. However, 26 wells were actually serviced during April.
Required:Prepare a performance report showing the company's activity and revenue and spending variances for April. Indicate in each case whether the variance is favorable (F) or unfavorable (U).