Wartenberg Corporation Uses Customers Served as Its Measure of Activity

Essay

Wartenberg Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.80 per customer served. Wages and salaries should be $38,800 per month plus $1.00 per customer served. Supplies should be $0.60 per customer served. Insurance should be $7,100 per month. Miscellaneous expenses should be $5,100 per month plus $0.30 per customer served.
The company reported the following actual results for January: Required:
Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U).