Rossetto Corporation Bases Its Budgets on the Activity Measure Customers

Essay

Rossetto Corporation bases its budgets on the activity measure customers served. During January, the company planned to serve 30,000 customers, but actually served 33,000 customers. Revenue is $4.10 per customer served. Wages and salaries are $36,000 per month plus $1.50 per customer served. Supplies are $0.50 per customer served. Insurance is $12,000 per month. Miscellaneous expenses are $4,800 per month plus $0.10 per customer served.
Required:
Prepare a report showing the company's activity variances for January. Indicate in each case whether the variance is favorable (F) or unfavorable (U).