Question
In: Accounting
Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for...
|
Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for 39,000 customers, but actually served 41,000 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 | $ | 2.50 | ||||
| Wages and salaries | $ | 20,000 | $ | 0.86 | ||
| Supplies | $ | 0 | $ | 0.51 | ||
| Insurance | $ | 7,000 | $ | 0.00 | ||
| Miscellaneous | $ | 3,000 | $ | 0.31 | ||
Actual results for December:
| Revenue | $ | 101,600 |
| Wages and salaries | $ | 50,000 |
| Supplies | $ | 19,010 |
| Insurance | $ | 9,000 |
| Miscellaneous | $ | 19,010 |
|
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 |
||
| Revenue | $ | (Click to select) F None U |
| Expenses: | ||
| Wages and salaries | (Click to select) F None U | |
| Supplies | (Click to select) U F None | |
| Insurance | (Click to select) None U F | |
| Miscellaneous | (Click to select) None U F | |
| Total expense | (Click to select) None F U | |
| Net operating income | $ | (Click to select) U None F |
Solutions
Expert Solution
|
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 |
||
| Revenue | $ | (41000*2.5-101600) = 900 U |
| Expenses: | ||
| Wages and salaries | 55260-50000 = 5260 F | |
| Supplies | 20910-19010 = 1900 F | |
| Insurance | 2000 U | |
| Miscellaneous | 15710-19010 = 3300 U | |
| Total expense | 1860 F | |
| Net operating income | $ | 960 F |
ekkarill92 answered 1 year agoRelated Solutions
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Variable element
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Variable Element
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the following revenue and cost formulas in its budgeting, where q
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Supplies
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activity. During February, the company budgeted for 36,800
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the following revenue and cost formulas in its budgeting, where q
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Hertzler Corporation uses customers served as its measure of
activity. During November, the company budgeted for 23,000
customers, but actually served 25,000 customers. The company uses
the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
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F
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67,250
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U
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22,750
2,300
F
Insurance ($5,400)
5,400...
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For the Month Ended December 31
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Planning Budget
Variances
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29,000
28,000
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F
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22,290
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F
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5,600...
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