Question

Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November:

Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
	Actual Results			Planning Budget		Variances
Customers served		24,000			23,000
Revenue ($3.60q)	$	86,200		$	82,800	$	3,400	F
Expenses:
Wages and salaries ($22,300 + $1.13q)		49,420			48,290		1,130	U
Supplies ($0.53q)		10,990			12,190		1,200	F
Insurance ($4,200)		4,200			4,200		0	None
Miscellaneous expense ($3,200 + $0.33q)		9,590			10,790		1,200	F
Total expense		74,200			75,470		1,270	F
Net operating income	$	12,000		$	7,330	$	5,170	F

Required:

Prepare the company's flexible budget performance report for November. 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.)

Answer 1

	Actual Results	Revenue and spending variances		Flexible budget	Activity variances		Planning budget
Customers served	24000			24000			23000
Revenue	86200	200	U	86400	3600	F	82800
Expenses:
Wages and salaries	49420	0	None	49420	1130	U	48290
Supplies	10990	1730	F	12720	530	U	12190
Insurance	4200	0	None	4200	0	None	4200
Miscellaneous expense	9590	1530	F	11120	330	U	10790
Total expense	74200	3260	F	77460	1990	U	75470
Net operating income	12000	3060	F	8940	1610	F	7330