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 Customers served Revenue ($3.60q) Expenses: Wages and salaries ($23,000+ $1.200) Supplies ($0.50q) Insurance ($ 6,100) Miscellaneous expense ($4,900+ $0.404) Total expense Net operating income Customers served Revenue Expenses Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Actual Results Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Actual Results 24,000 Required: Prepare the company's flexible budget performance report for November. 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.) Revenue and Spending Variances Flexible Budget 24,800 $ 88,500 24,000 49,300 13,800 6,000 12,300 81,400 $ 7,100 Planning Budget 26,000 $93,600 54,200 13,000 6,100 Activity Variances 15,300 88,600 $ 5,000 Planning Budget Variances $ 5,100 U 26.000 4,900 F 800 U 100 F 3,000 F 7,200 F $ 2,100 F
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 Customers served Revenue ($3.60q) Expenses: Wages and salaries ($23,000+ $1.200) Supplies ($0.50q) Insurance ($ 6,100) Miscellaneous expense ($4,900+ $0.404) Total expense Net operating income Customers served Revenue Expenses Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Actual Results Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Actual Results 24,000 Required: Prepare the company's flexible budget performance report for November. 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.) Revenue and Spending Variances Flexible Budget 24,800 $ 88,500 24,000 49,300 13,800 6,000 12,300 81,400 $ 7,100 Planning Budget 26,000 $93,600 54,200 13,000 6,100 Activity Variances 15,300 88,600 $ 5,000 Planning Budget Variances $ 5,100 U 26.000 4,900 F 800 U 100 F 3,000 F 7,200 F $ 2,100 F
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
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: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
Customers served
Revenue ($3.60g)
Expenses:
Wages and salaries ($23,000+ $1.204)
Supplies ($0.50q)
Insurance ($ 6,100)
Miscellaneous expense ($4,900+ $0.404)
Total expense
Net operating income
Customers served
Revenue
Expenses
Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
Actual Results
24,800
$ 88,500
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income
Bickel Corporation
Flexible Budget Performance Report
For the Month Ended November 30
Actual
Results
Required:
Prepare the company's flexible budget performance report for November. 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.)
24,000
Revenue and
Spending Variances
Flexible
Budget
49,300
13,800
6,000
12,300
81,400
$ 7,100
24,000
Planning Budget
26,000
$93,600
54,200
13,000
6,100
15,300
88,600
$ 5,000
Activity Variances
Planning
Budget
Variances
26.000
$5,100 U
4,900 F
800 U
100 F
3,000 F
7,200 F
$ 2,100 F
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