Schoeppner Corporation Uses Customers Served as Its Measure of Activity

Essay

Schoeppner Corporation uses customers served as its measure of activity. During October, the company budgeted for 39,000 customers, but actually served 42,000 customers. The company bases its budgets on the following information: Revenue should be $3.10 per customer served. Wages and salaries should be $38,100 per month plus $0.80 per customer served. Supplies should be $0.40 per customer served. Insurance should be $9,600 per month. Miscellaneous expenses should be $3,400 per month plus $0.40 per customer served. The company reported the following actual results for October: Required:
Prepare the company's flexible budget performance report for October. Label each variance as favorable (F) or unfavorable (U).