Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35300 customers. but actually served 33.400 customers. The company uses the following revenue and cost formulas in its budgeting, where q 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 $0.31q The company reported the following actual results for February Revenue Mages and salariss 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 (.e., zero wariance). Input all amounts as positive values.) ustomers served venue $ 121,000 $ 66,100 $ 14,500 # 10,500 $ 18,200 Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 33,400 Revenue and Spending Flexible Budget Variances 33,400 Activity Variances Planning Budget 35,100

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35300 customers. but actually served 33.400 customers. The company uses the following revenue and cost formulas in its budgeting, where q 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 $0.31q The company reported the following actual results for February Revenue Mages and salariss 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 (.e., zero wariance). Input all amounts as positive values.) ustomers served venue $ 121,000 $ 66,100 $ 14,500 # 10,500 $ 18,200 Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 33,400 Revenue and Spending Flexible Budget Variances 33,400 Activity Variances Planning Budget 35,100

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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I need help with a few problems from the past chapters im still stuck with.
Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates for budgeting purposes and the actual results for May as shown below: Fixed Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 5,600 $ 182,000 Employee salaries and wages $ 55,000 $ 1,600 $ 110,300 Travel expenses $ 850 $ 27,200 Other expenses $ 34,000 $ 32,600 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. REQUIRED QUESTIONS:) 3. What amount of travel expenses would be included in Adger’s flexible budget for May? 1. What amount of revenue would be included in Adger’s flexible budget for May?
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