Accounting homework really stuck on a problem, please help!!!
Accounting homework really stuck on a problem, please help!!!
Vieyra Corporation uses customers served as its measure of activity. During November, the company budgeted for 36,000 customers, but actually served 39,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue $2.50q
Wages and salaries $21,500+ $0.70q
Supplies $0.40q
Insurance $6,100
Miscellaneous $3,700+ $0.40q
The company reported the following actual results for November:
Revenue $100,300
Wages and salaries 45,900
Supplies 15,200
Insurance 6,300
Miscellaneous 17,600
Required:
Prepare the company’s flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
Planning Budget
Activity Variance
Flexible Budget
Revenue & Spending Variance
Actual Results
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