Accounting homework really stuck on a problem, please help!!!

Posted on 2014-04-11 06:36:00 in Accounting by THE PREZ

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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