ABC Corporation Is a service company that measures Its output based on the number of customers served. The company provided the following fixed and varlable cost estimates that It uses for budgeting purposes and the actual results for May as shown below: Actual Total Fixed Element Variable Element per Month per Customer Served $ 6,100 $ 1,500 for May $223,500 $126,000 $ 20,400 $44,300 Revenue $ 68,000 Employee salaries and wages Travel expenses other expenses 24 600 $ 47,000
ABC Corporation Is a service company that measures Its output based on the number of customers served. The company provided the following fixed and varlable cost estimates that It uses for budgeting purposes and the actual results for May as shown below: Actual Total Fixed Element Variable Element per Month per Customer Served $ 6,100 $ 1,500 for May $223,500 $126,000 $ 20,400 $44,300 Revenue $ 68,000 Employee salaries and wages Travel expenses other expenses 24 600 $ 47,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...
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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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![[The following information applles to the questions displayed below.]
ABC Corporation Is a service company that measures Its output based on the number of customers served. The company
provided the following fixed and varlable cost estimates that It uses for budgeting purposes and the actual results for May
as shown below:
Actual
Total
for May
$ 223,500
$ 126,000
20,400
S.44,300
Fixed
Element
Variable Element
per Month per Customer Served
$6,100
$ 1,500
Revenue
Employee salaries and wages
Travel expenses
other expenses
$ 68,000
$ 47,000
When preparing Its plannlng budget the company estimated that It would serve 35 customers per month; however, during
May the company actually served 40 customers.
14. What activity varlance would Adger report In May with respect to Its revenue? (Indicate the effect of each varlance by selecting
"F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)
Activity variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F77606174-4320-450d-9f64-432fa48ffa19%2F39935ed3-2f37-445a-9707-9f0f0badcaf5%2F5f66f4p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[The following information applles to the questions displayed below.]
ABC Corporation Is a service company that measures Its output based on the number of customers served. The company
provided the following fixed and varlable cost estimates that It uses for budgeting purposes and the actual results for May
as shown below:
Actual
Total
for May
$ 223,500
$ 126,000
20,400
S.44,300
Fixed
Element
Variable Element
per Month per Customer Served
$6,100
$ 1,500
Revenue
Employee salaries and wages
Travel expenses
other expenses
$ 68,000
$ 47,000
When preparing Its plannlng budget the company estimated that It would serve 35 customers per month; however, during
May the company actually served 40 customers.
14. What activity varlance would Adger report In May with respect to Its revenue? (Indicate the effect of each varlance by selecting
"F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values.)
Activity variance
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