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Problem
Voytek Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 45,000 customers, but actually served 43,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Fixed element per month
Variable element per customer
Revenue
3.83
Wages and salaries
37,900
1.30
Supplies
0
0.60
Insurance
8,900
0.00
Miscellaneous
7,900
0.50
Required:
Prepare a report showing the company's activity variances for October. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "tiny_mce_markerquot; sign in your response.)
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