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:

	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

Actual results for December:

Revenue	$	111,300
Wages and salaries	$	56,000
Supplies	$	21,860
Insurance	$	9,300
Miscellaneous	$	21,860

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	$		$		$

Answer 1

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