Branner Corporation Uses Customers Served as Its Measure of Activity

Essay

Branner Corporation uses customers served as its measure of activity. During June, the company budgeted for 26,000 customers, but actually served 23,000 customers. The company bases its budgets on the following information: Revenue should be $2.80 per customer served. Wages and salaries should be $22,100 per month plus $0.70 per customer served. Supplies should be $0.50 per customer served. Insurance should be $5,200 per month. Miscellaneous expenses should be $2,100 per month plus $0.30 per customer served. The company reported the following actual results for June: Required:
Prepare a report showing the company's revenue and spending variances for June. Label each variance as favorable (F) or unfavorable (U).