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 58,000 customers, but actually served 60,000 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:

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.)

Complete the company's flexible budget for May based on the actual level of activity for the month. (Input all amounts as positive values. Omit the "$" sign in your response.)

Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 58,000 customers, but actually served 60,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for December:

Explanation / Answer

Flexible Budget For the Month Ended May 31 Actual customers served 60000 Revenue 180000 =60000*3 Expenses: Wages and salaries 84900 =21900+(60000*1.05) Supplies 42000 =60000*0.7 Insurance 8900 Miscellaneous 34900 =4900+(60000*0.5) Total expense 170700 Net operating income 9300 Revenue and Spending Variances For the Month Ended May 31 Revenue 1700 U Expenses: Wages and salaries 900 F Supplies 1900 F Insurance 1000 U Miscellaneous 5200 U Total expense 3400 U Net operating income 5100 U

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