Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,500 customers, but actually served 27,500 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $5.00q Wages and salaries: $34,700 + $1.55g Supplies: $0.95q Insurance: $11,900 Miscellaneous expenses: $7,900 + $0.45q The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense $149,800 $ 69,500 $ 15,900 $ 11,900 $ 25, 200 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,500 customers, but actually served 27,500 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $5.00q Wages and salaries: $34,700 + $1.55g Supplies: $0.95q Insurance: $11,900 Miscellaneous expenses: $7,900 + $0.45q The company reported the following actual results for February: Revenue Wages and salaries Supplies Insurance Miscellaneous expense $149,800 $ 69,500 $ 15,900 $ 11,900 $ 25, 200 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

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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Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. Fixed Element per Month Variable Element per Customer Served Actual Total for July Revenue $ 4,500 $ 100,000 Employee salaries and wages $ 43,100 $ 900 $ 63,300 Travel expenses $ 500 $ 11,500 Other expenses $ 36,900 $ 37,900 When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July. The activity variance for net operating income for July would have been closest to: 16,400 F or U, 15,500 F or U.
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I need help with a few problems from the past chapters im still stuck with.
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35.100 customers. but actually served 33.400 customers. The company uses the following revenue and cost formulas in its budgeting, where is the number of customers served Revenue: $3.60g Wages and salaries: $33,300+ $113g Supplies: $0.53q Insurance: $10,500 Miscellaneous expenses: $6,500 $0.31 The company reported the following actual results for February $ 121,000 $ 60,100 $ 14,500 $ 10,500 $ 18,200 Revenue Wages and salaris Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le.. zero variance). Input all amounts as positive values.) Customer served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense tal…