BONUS Homework ×1+ +-* O letomheducation com/hm.tpx Cicchetti Corporation uses c

Question

BONUS Homework ×1+ +-* O letomheducation com/hm.tpx Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Planning Results Budget Variances Customers served Revenue (3 50q) 43,000 42,000 S 150,300 147,000 S 3,300 F Expenses Wages and salaries ($24.200 $1.32q) 80,960 79,640 1,320 U Supplies (S0.72q) Insurance ($6,100) Miscellaneous expense ($5,100 $.41) 20,920 22,320 1,400 F 28,840 30.240 1,400 F 6,1006,100 Total expense 136,820 138,3001,480 F Net operating income 13,480 S 8.700 S 4,780 1F Required: 1 Prepare a repon ghoving the company's revenue and spending variances for December dodicate the effect of eäch vañiance by sélecting "F tor favórable. "u" for unfavörable, and None" tor no effect (Le. zero variance).) CICCHETTI CORPORATION Revenue and Spending Variances For the Month Ended December 31 Actual Results Variances Customers served Budget 43 000 Revenue 150 300

Explanation / Answer

1. Revenue And spending variance:

$80,960

$80,960

(43000×$1.32+24200)

$30,960

(43000×.72)

$20,920

$1,810 F

$22,730

(43000×.41+5100)

actual results revenue And spending variance flexible budget Customer served 43000 43000 Revenue $150,300 $200 U $150,500 Expenses: Wages and salaries

$80,960

0

$80,960

(43000×$1.32+24200)

Supplies $28,840 $2,120 F

$30,960

(43000×.72)

Insurance $6100 0 $6100 Miscellaneous expense

$20,920

$1,810 F

$22,730

(43000×.41+5100)

Total expenses $136,820 $3,930 F $140,750 Net operating income $13,480 $3,730 F $9750

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