Essay
Hertzler Corporation uses customers served as its measure of activity.During November,the company budgeted for 33,000 customers,but actually served 34,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:
Revenue: $3.20q
Wages and salaries: $26,600 + $1.20q
Supplies: $0.40q
Insurance: $7,900
Miscellaneous: $6,400 + $0.10q
The company reported the following actual results for November: 
Required:
Prepare a report showing the company's revenue and spending variances for November.Label each variance as favorable (F)or unfavorable (U).
Correct Answer:
Verified
Correct Answer:
Verified
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