Rick's Hairstyling Activity Variances For the Month Ended March 31 Flexible Budget 1,100 Planning Budget 1,000 Activity Variances* Client-visits Revenue ($180.00q) $198,000 $180,000 $18,000 F Expenses: Wages and salaries ($65,000 + $37.00q) Hairstyling supplies ($1.50g) Client gratuities ($4.10q) Electricity ($1,500 + $0.10q) Rent ($28,500) Liability insurance ($2,800) Employee health insurance ($21,300) .. Miscellaneous ($1,200 + $0.20q) . 105,700 102,000 3,700 U 1,650 1,500 150 U .... 4,510 1,610 410 U 4,100 1,600 10 U 28,500 2,800 28,500 .... 2,800 ... 21,300 21,300 1,420 1,400 20 U .... ... Total expense 163,200 4,290 U 167,490 $ 30,510 $ 16,800 $13,710 F Net operating income *The revenue variance is labeled favorable (unfavorable) when the revenue in the flexible budget is greater than (less than) the planning budget. The expense variances are labeled favorable (unfavorable) when the expense in the flexible budget is less than (greater than) the planning budget.

Rick's Hairstyling Activity Variances For the Month Ended March 31 Flexible Budget 1,100 Planning Budget 1,000 Activity Variances* Client-visits Revenue ($180.00q) $198,000 $180,000 $18,000 F Expenses: Wages and salaries ($65,000 + $37.00q) Hairstyling supplies ($1.50g) Client gratuities ($4.10q) Electricity ($1,500 + $0.10q) Rent ($28,500) Liability insurance ($2,800) Employee health insurance ($21,300) .. Miscellaneous ($1,200 + $0.20q) . 105,700 102,000 3,700 U 1,650 1,500 150 U .... 4,510 1,610 410 U 4,100 1,600 10 U 28,500 2,800 28,500 .... 2,800 ... 21,300 21,300 1,420 1,400 20 U .... ... Total expense 163,200 4,290 U 167,490 $ 30,510 $ 16,800 $13,710 F Net operating income *The revenue variance is labeled favorable (unfavorable) when the revenue in the flexible budget is greater than (less than) the planning budget. The expense variances are labeled favorable (unfavorable) when the expense in the flexible budget is less than (greater than) the planning budget.

Name: Activity VariancesThe company actually washed 8,800 cars in August.Req
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Description: Activity VariancesThe company actually washed 8,800 cars in August.Required:Calculate the company’s activity variances for august. (Hint: Refer to Exhibit 9–6.)Exhibit 9–6 Flexible Budget Based on Actual Activity Rick's HairstylingActivity VariancesF

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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Please do not give solution in image format thanku
Please do not give solution in image format thanku