Please show how (step-by-step) you get the numbers for each account in the Flexible budget column. 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: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Actual Results Planning Budget Variances Customers served........................................ 24,000 25,000 Revenue ($3.60q)......................................... $85,700 $90,000 $4,300 U Expenses: Wages and salaries ($22,200 + $1.20q)...... 48,900 52,200 3,300 F Supplies ($0.50q)...................................... 13,000 12,500 500 U Insurance ($5,700)..................................... 5,600 5,700 100 F Miscellaneous expense ($4,500 + $0.40q)... 11,900 14,500 2,600 F Total expense.............................................. 79,400 84,900 5,500 F Net operating income................................... $ 6,300 $ 5,100 $1,200 F Required: Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
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.
Please show how (step-by-step) you get the numbers for each account in the Flexible budget column.
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:
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Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 |
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Actual Results |
Planning |
Variances |
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Customers served........................................ |
24,000 |
25,000 |
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Revenue ($3.60q)......................................... |
$85,700 |
$90,000 |
$4,300 U |
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Expenses: |
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Wages and salaries ($22,200 + $1.20q)...... |
48,900 |
52,200 |
3,300 F |
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Supplies ($0.50q)...................................... |
13,000 |
12,500 |
500 U |
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Insurance ($5,700)..................................... |
5,600 |
5,700 |
100 F |
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Miscellaneous expense ($4,500 + $0.40q)... |
11,900 |
14,500 |
2,600 F |
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Total expense.............................................. |
79,400 |
84,900 |
5,500 F |
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Net operating income................................... |
$ 6,300 |
$ 5,100 |
$1,200 F |
Required:
Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U).
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