2 Bickel 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 November: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 42:44 Customers served Revenue ($3.60q) Expenses: Wages and salaries ($23,000 + $1.20q) Supplies ($0.50g) Insurance ($ 6,100) Miscellaneous expense ($4,900 + $0.40g) Total expense Net operating income Required: Actual Results 24,800 $ 88,500 49,300 13,800 Planning Budget 26,000 Variances $5,100 U $ 93,600 54,200 13,000 6,000 6,100 12,300 15,300 81,400 88,600 $ 7,100 $ 5,000 4,900 F 800 U 100 None 3,000 F 7,200 F $ 2,100 F Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Variances Actual Results Customers served 24,800 Revenue Expenses Wages and salaries Supplies Flexible P Activity Variances Budget E 24,800
2 Bickel 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 November: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 42:44 Customers served Revenue ($3.60q) Expenses: Wages and salaries ($23,000 + $1.20q) Supplies ($0.50g) Insurance ($ 6,100) Miscellaneous expense ($4,900 + $0.40g) Total expense Net operating income Required: Actual Results 24,800 $ 88,500 49,300 13,800 Planning Budget 26,000 Variances $5,100 U $ 93,600 54,200 13,000 6,000 6,100 12,300 15,300 81,400 88,600 $ 7,100 $ 5,000 4,900 F 800 U 100 None 3,000 F 7,200 F $ 2,100 F Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Variances Actual Results Customers served 24,800 Revenue Expenses Wages and salaries Supplies Flexible P Activity Variances Budget E 24,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Transcribed Image Text:2
Bickel 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 November:
Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
42:44
Customers served
Revenue ($3.60q)
Expenses:
Wages and salaries ($23,000 + $1.20q)
Supplies ($0.50g)
Insurance ($ 6,100)
Miscellaneous expense ($4,900 + $0.40g)
Total expense
Net operating income
Required:
Actual Results
24,800
$ 88,500
49,300
13,800
Planning Budget
26,000
Variances
$5,100 U
$ 93,600
54,200
13,000
6,000
6,100
12,300
15,300
81,400
88,600
$ 7,100
$ 5,000
4,900 F
800 U
100 None
3,000 F
7,200 F
$ 2,100 F
Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
Note: Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero
varlance). Input all amounts as positive values.
Bickel Corporation
Flexible Budget Performance Report
For the Month Ended November 30
Revenue and Spending
Variances
Actual
Results
Customers served
24,800
Revenue
Expenses
Wages and salaries
Supplies
Flexible
P
Activity Variances
Budget
E
24,800
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