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 42,000 customers, but actually served 44,000 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:

Actual results for December:

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.)

Fixed element
per month Variable element
per customer   Revenue $ 2.60             Wages and salaries $ 20,300         $ 0.89             Supplies $ 0         $ 0.54             Insurance $ 7,300         $ 0.00             Miscellaneous $ 3,300         $ 0.34          

Explanation / Answer

Complete the report showing the company's revenue and spending variances for December

Flexible budget Actual results revenue and spending variance Customers served 44000 44000 Revenue 114400 111300 3100 U Expenses Wages and salaries 59460 56000 3460 F Supplies 23760 21860 1900 F Insurance 7300 9300 2000 U Miscellaneous 18260 21860 3600 U Total expense 108780 109020 240 U Net operating income 5620 2280 3340 U

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