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).