Brandewie Corporation Bases Its Budgets on the Activity Measure Customers

Essay

Brandewie Corporation bases its budgets on the activity measure customers served.During May,the company planned to serve 38,000 customers,but actually served 33,000 customers.Revenue is $2.80 per customer served.Wages and salaries are $28,800 per month plus $0.80 per customer served.Supplies are $0.50 per customer served.Insurance is $6,800 per month.Miscellaneous expenses are $5,800 per month plus $0.30 per customer served.
Required:
Prepare a report showing the company's activity variances for May.Indicate in each case whether the variance is favorable (F)or unfavorable (U).