5. XYZ Industries, has the following information to be used in preparing its flexible budget: . The activity driver is the number of customers. . The expected revenue per customer is $3.8 Dark expected to serve 30,000 customers for the month when preparing the planning budget The budgeted costs are as follows: o Wages and salaries is $31,200 per month plus $1.4 per customer served o Insurance is $8,500 per month o Supplies are $0.7 per customer served o Miscellaneous expenses are $3,700 per month plus 50.10 per customer served • XYZ actually served 29,000 customers during the month . • . Actual results were as follows: Revenues were $106,600 Supplies were $21,000 o o o Insurance was 8,500 o Misc. expenses were $6,800 What is the total profit the company would expect in the flexible budget for the month?
5. XYZ Industries, has the following information to be used in preparing its flexible budget: . The activity driver is the number of customers. . The expected revenue per customer is $3.8 Dark expected to serve 30,000 customers for the month when preparing the planning budget The budgeted costs are as follows: o Wages and salaries is $31,200 per month plus $1.4 per customer served o Insurance is $8,500 per month o Supplies are $0.7 per customer served o Miscellaneous expenses are $3,700 per month plus 50.10 per customer served • XYZ actually served 29,000 customers during the month . • . Actual results were as follows: Revenues were $106,600 Supplies were $21,000 o o o Insurance was 8,500 o Misc. expenses were $6,800 What is the total profit the company would expect in the flexible budget for the month?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 7E: Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit...
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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:5. XYZ Industries, has the following information to be used in preparing its flexible budget:
.
The activity driver is the number of customers.
The expected revenue per customer is 53.8
Dark expected to serve 30,000 customers for the month when preparing the planning budget
The budgeted costs are as follows:
o Wages and salaries is $31,200 per month plus $1.4 per customer served
o
Insurance is $8,500 per month
o
Supplies are $0.7 per customer served
o Miscellaneous expenses are $3,700 per month plus 50 10 per customer served
XYZ actually served 29,000 customers during the month
Actual results were as follows:
.
o Revenues were $106,600
Supplies were $21,000
o
o
Insurance was 8,500
o Misc. expenses were $6,800
What is the total profit the company would expect in the flexible budget for the month?
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