Voytek
Corporation bases its budgets on the activity measure customers served.
During October, the company planned to serve 49,000 customers, but
actually served 50,000 customers. The company has provided the following
data concerning the formulas it uses in its budgeting:
| Fixed element per month | Variable element per customer | |||||
| Revenue | $ | 3.87 | ||||
| Wages and salaries | $ | 38,300 | $ | 1.34 | ||
| Supplies | $ | 0 | $ | 0.64 | ||
| Insurance | $ | 8,800 | $ | 0.00 | ||
| Miscellaneous | $ | 8,300 | $ | 0.54 | ||
| | ||||||
| Required: |
|
Complete the report showing the company's activity variances for October. (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.)
|
| Voytek Corporation Activity Variances For the Month Ended October 31 | ||
| Revenue | $ | F |
| | ||
| Expenses: | ||
| Wages and salaries | U | |
| Supplies | U | |
| Insurance | None | |
| Miscellaneous | U | |
| | ||
| Total expense | U | |
| | ||
| Net operating income | $ | F |
| | ||
| | ||
Explanation:
| Voytek Corporation Activity Variances For the Month Ended October 31 | |||||||
| Planning Budget | Flexible Budget | Activity Variances | |||||
| Customers served (q) | 49,000 | 50,000 | |||||
| Revenue ($3.87q) | $ | 189,630 | $ | 193,500 | $ | 3,870 | F |
| | | | | | | ||
| Expenses: | |||||||
| Wages and salaries ($38,300 + $1.34q) | 103,960 | 105,300 | 1,340 | U | |||
| Supplies ($0.64q) | 31,360 | 32,000 | 640 | U | |||
| Insurance ($8,800) | 8,800 | 8,800 | 0 | None | |||
| Miscellaneous ($8,300 + $0.54q) | 34,760 | 35,300 | 540 | U | |||
| | | | | | | ||
| Total expense | 178,880 | 181,400 | 2,520 | U | |||
| | | | | | | ||
| Net operating income | $ | 10,750 | $ | 12,100 | $ | 1,350 | F |
| | | | | | | ||
