During September, Clendennen Corporation budgeted for 47,000 customers, but actually served 45,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.60q Wages and salaries: $37,200 + $1.93q Supplies: $0.83q Insurance: $14,200 Miscellaneous expense: $7,200 + $0.33q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month. Clendennen Corporation Flexible Budget For the Month Ended September 30 Actual customers served 45,000 Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income
During September, Clendennen Corporation budgeted for 47,000 customers, but actually served 45,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.60q Wages and salaries: $37,200 + $1.93q Supplies: $0.83q Insurance: $14,200 Miscellaneous expense: $7,200 + $0.33q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month. Clendennen Corporation Flexible Budget For the Month Ended September 30 Actual customers served 45,000 Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:During September, Clendennen Corporation budgeted for 47,000 customers, but actually served 45,000 customers. The company
uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.60q
Wages and salaries: $37,200 + $1.93q
Supplies: $0.83q
Insurance: $14,200
Miscellaneous expense: $7,200 + $0.33q
Required:
Prepare the company's flexible budget for September based on the actual level of activity for the month.
Clendennen Corporation
Flexible Budget
For the Month Ended September 30
Actual customers served
45,000
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income
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