According to its original plan, Perez Consulting Services Company plans to charge its customers for service at $128 per hour in Year 2. The company president expects consulting services provided to customers to reach 50,000 hours at that rate. The marketing manager, however, argues that actual results may range from 47,000 hours to 53,000 hours because of market uncertainty. Perez's standard variable cost is $48 per hour, and its standard fixed cost is $1,330,000. Required Develop flexible budgets based on the assumptions of service levels at 47,000 hours, 50,000 hours, and 53,000 hours. Flexible Budget Flexible Budget Flexible Budget 47,000 Hours 50,000 Hours 53,000 Hours
According to its original plan, Perez Consulting Services Company plans to charge its customers for service at $128 per hour in Year 2. The company president expects consulting services provided to customers to reach 50,000 hours at that rate. The marketing manager, however, argues that actual results may range from 47,000 hours to 53,000 hours because of market uncertainty. Perez's standard variable cost is $48 per hour, and its standard fixed cost is $1,330,000. Required Develop flexible budgets based on the assumptions of service levels at 47,000 hours, 50,000 hours, and 53,000 hours. Flexible Budget Flexible Budget Flexible Budget 47,000 Hours 50,000 Hours 53,000 Hours
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:According to its original plan, Perez Consulting Services Company plans to charge its customers for service at $128 per hour in Year 2.
The company president expects consulting services provided to customers to reach 50,000 hours at that rate. The marketing
manager, however, argues that actual results may range from 47,000 hours to 53,000 hours because of market uncertainty. Perez's
standard variable cost is $48 per hour, and its standard fixed cost is $1,330,000.
Required
Develop flexible budgets based on the assumptions of service levels at 47,000 hours, 50,000 hours, and 53,000 hours.
Flexible Budget Flexible Budget Flexible Budget
47,000 Hours
50,000 Hours
53,000 Hours
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