Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,500 customers, but actually served 27,500 customers. The company uses the following revenue and cost formulas in its budgeting, where g is the number of customers served: Revenue: $5.00q Wages and salaries: $34,700 + $1.55g Supplies: $0.95q Insurance: $11,900 Miscellaneous expenses: $7,900 + $0.45q The company reported the following actual results for February: Revenue $149,800 $ 69,500 $ 15,900 $ 11,900 $ 25,200 Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,500 customers, but actually served 27,500 customers. The company uses the following revenue and cost formulas in its budgeting, where g is the number of customers served: Revenue: $5.00q Wages and salaries: $34,700 + $1.55g Supplies: $0.95q Insurance: $11,900 Miscellaneous expenses: $7,900 + $0.45q The company reported the following actual results for February: Revenue $149,800 $ 69,500 $ 15,900 $ 11,900 $ 25,200 Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
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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