Crovo Corporation uses customers served as its measure of activity. During Decem

Question

Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 56,000 customers, but actually served 58,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December: Data used in budgeting: Fixed element per month Variable element per customer Revenue $ 2.90 Wages and salaries $ 21,700 $ 1.03 Supplies $ 0 $ 0.68 Insurance $ 8,700 $ 0.00 Miscellaneous $ 4,700 $ 0.48 Actual results for December: Revenue $ 165,300 Wages and salaries $ 72,000 Supplies $ 37,540 Insurance $ 9,700 Miscellaneous $ 37,540 Required: Complete the report showing the company's revenue and spending variances for December. (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 "$" sign in your response.) Crovo Corporation Revenue and Spending Variances For the Month Ended December 31 Flexible Budget Actual Results Revenue and Spending Variances Customers served Revenue $ $ $ Expenses: Wages and salaries Supplies Insurance Miscellaneous Total expense Net operating income $ $ $

Guest portal xConnect x C Chegg Study | Guided So xC Selected Sales And Oper:x C Crovo Corporation Uses x C Secure https://newconnect.mheducation.com/flow/connect.html Test 3: Chs 8,9101 Saved Help Save & Exit Submit $9,700 $37540 Insurance 2 Required: Complete the report showing the company's revenue and spending variances for December. (Input all amounts as positive values. Leave no cells blank be certain to enter '"O" wherever required. Indicate the effect of each variance by selecting ?. for favorable, "U" for unfavorable, and ,"None" for no effect (ie., zero variance). Omit the $"sign in your response.) points Crovo Corporation Revenue and Spending Variances For the Month Ended December 31 01:0B:55 Actual Revenue and Spending Variances Flexible Customers served (Click to select) Revenue Wages and salaries lick to select Y Click to select) 7 Click to select) 7 Miscellaneous Click to select) ||(Click to select) LLClick to select) '! '! Total expense | $? ? Net operating income $ $ Mc Graw 1 10:01

Explanation / Answer

Crovo Corporation Revenue and Spending Variances For the Month Ended December 31 Given Flexible Budget (58,000 customers) Actual Results (58000 customers) Revenue & Spending Variance Revenue (58000 x $2.90) $168,200.00 $165,300.00 $2,900.00 U Expenses: Wages and salaries ($21,700 + 58000 x $1.03) $81,440.00 $72,000.00 $9,440.00 F Supplies ($.68 x 58000) $39,440.00 $37,540.00 $1,900.00 F Insurance $8,700.00 $9,700.00 $1,000.00 UF Miscellaneous (58000 x $.48 )+ $4700 $32,540.00 $37,540.00 $5,000.00 UF Total expense $162,120.00 $156,780.00 $5,340.00 F Net operating income $6,080.00 $8,520.00 $2,440.00 F

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