ABC Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $3.70q Wages and salaries: $33,400 + $1.16q Supplies: $0.56q Insurance: $10,600 Miscellaneous expenses: $6,600 + $0.32q The company reported the following actual results for February: Revenue Wages and salaries. Supplies Insurance Miscellaneous expense $123,800 $ 68,200 $ 14,600 $ 10,600 $ 18,700 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). 56á

ABC Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,200 customers, but actually served 32,800 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $3.70q Wages and salaries: $33,400 + $1.16q Supplies: $0.56q Insurance: $10,600 Miscellaneous expenses: $6,600 + $0.32q The company reported the following actual results for February: Revenue Wages and salaries. Supplies Insurance Miscellaneous expense $123,800 $ 68,200 $ 14,600 $ 10,600 $ 18,700 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). 56á

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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