How to find the flexible budget
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.
How to find the flexible budget
![B. $485 F
C. $195 U
D. $485 U
9. Squillace Corporation uses customers served as its measure of activity. During October, the
company budgeted for 38,000 customers, but actually served 35,000 customers. The company
has provided the following data concerning the formulas used in its budgeting and its actual
results for October:
Data used in budgeting:
Fixed
Variable
element
element per
per month
customer
$3.80
$1.20
Revenue...
Wages and salaries
Supplies.
$35,400
$0.60
$10,600
$7,200
$0.00
$0.40
Insurance
Miscellaneous
Actual results for October:
$130,900
$75,700
$21,300
Revenue.
Wages and salaries
Supplies
Insurance
$10,200
$23,500
Miscellaneous
Required:
Prepare the company's flexible budget performance report for October (calculate both activity
variances and revenue and spending variances). Label each variance as favorable (F) or
unfavorable (U). Use the templates given below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F23dd5894-167a-45c6-9282-a60af609491a%2F6a3c4a9f-a17b-47cb-a8ea-a9418679761f%2Fu52iar_processed.jpeg&w=3840&q=75)
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