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Bryntesson corporation bases its budgets on the activity

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Bryntesson Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 24,000 customers, but actually served 19,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served"

  • Revenue: $2.90q
  • Wages and salaries: $24,700 + $0.90q
  • Supplies: $0.40q
  • Insurance: $4,900
  • Miscellaneous: $2,800 + $0.10q

Required: Prepare a report showing the company's activity variances for September. Indicate in each case whether the variance is favorable (F) or unfavorable (U).

Reference no: EM13598767

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