Bellamy Corporation uses customers served as its measure of activity. The company bases its budgets on...

Bellamy Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.

The company reported the following actual results for October:

Customers served 22,000

Revenue $ 73,300

Wages and salaries $ 40,400

Supplies $ 16,100

Insurance $ 5,500

Miscellaneous expense $ 7,400

Required:

Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).

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