Arrasmith Corporation uses customers served as its measure of activity. During F

Question

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,500 customers, but actually served 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.00q

Wages and salaries: $33,700 + $1.25q

Supplies: $0.65q

Insurance: $10,900

Miscellaneous expenses: $6,900 + $0.35q

Revenue $ 129,800 Wages and salaries $ 68,500 Supplies $ 14,900 Insurance $ 10,900 Miscellaneous expense $ 20,200 Chapter 9 Quiz Seved Help Save& Exit Submit Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,500 customers, but actually served 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served Revenue: $400q Wages and salaries: $33,700+$1.25q Supplies: $065q Insurance: $10,900 Miscellaneous expenses: $6,900 $0.35q The company reported the following actual results for February: 129 $ 68,500 Hages and salaries Supplies Insurance Miscellanaous xpensa $ 10,900 ?20,200 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable or unfavorable (U). (Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive values.) Flexible Budget Performance Report For the Month Ended February 28 Actual Revenue and Flexible Activity BudgetVaraiances Planning Budget

Explanation / Answer

Actual Revenue and spending variances Flexible budget Activity variances Planning budget Customers served 31000 31000 35500 Revenue 129800 5800 F 124000 18000 U 142000 Expenses: Wages and salaries 68500 3950 F 72450 5625 F 78075 Supplies 14900 5250 F 20150 2925 F 23075 Insurance 10900 0 None 10900 0 None 10900 Miscellaneous expenses 20200 2450 U 17750 1575 F 19325 Total expense 114500 6750 F 121250 10125 F 131375 Net operating income 15300 12550 F 2750 7875 U 10625

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.