Question

Mieras Corporation uses customers served as its measure of activity. During January, the company budgeted for 37,000 customers, but actually served 36,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $2.80q
Wages and salaries: $22,800 + $0.90q
Supplies: $0.50q
Insurance: $7,500
Miscellaneous: $3,800 + $0.30q

The company reported the following actual results for January:

Revenue..............................	$102,900
Wages and salaries.........	$56,900
Supplies..............................	$18,300
Insurance............................	$10,100
Miscellaneous...................	$17,200

Prepare a report showing the company's revenue and spending variances for January. Label each variance as favorable (F) or unfavorable (U) (6 points).

Mieras Corporation
Revenue and Spending Variances
For the Month Ended January 31
			Revenue and
	Flexible	Actual	Spending
	Budget	Results	Variances
Customers served (q)...................................................
Revenue.............................................................................
Expenses:
Total expense...............................................................
Net operating expense.................................................

Please provide step by step instructions

Answer 1

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

	Flexible budget	Actual results	Revenue and spending variance
Customer served	36000	36000
Revenue	100800	102900	2100 F
Expenses
Wages and salaries	55200	56900	1700 U
Supplies	18000	18300	300 U
Insurance	7500	10100	2600 U
Miscellaneous	14600	17200	2600 U
Total expense	95300	102500	7200 U
Net operating income	5500	400	5100 U