Business, 06.05.2020 06:15 farashka03
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,800 customers, but actually served 29,200 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.30q
Wages and salaries: $34,000 + $1.34q
Supplies: $0.74q
Insurance: $11,200
Miscellaneous expenses: $7,200 + $0.38q
The company reported the following actual results for February:
Revenue $ 135,800
Wages and salaries $ 68,800
Supplies $ 15,200
Insurance $ 11,200
Miscellaneous expense $ 21,700
Required:
Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U).
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Arrasmith Corporation uses customers served as its measure of activity. During February, the company...
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