Solution:
Abbot Corporation | ||||
Revene and Spending Variance | ||||
For the month ended December | ||||
Particulars | Actual results | Revenue and spending variances | Flexible Budget | |
Nos of customers | 40000 | 40000 | ||
Revenue | $101,500.00 | $2,500.00 | U | $104,000.00 |
Expenses: | ||||
Wages and salaries | $52,000.00 | $300.00 | F | $52,300.00 |
Supplies | $18,100.00 | $1,900.00 | F | $20,000.00 |
Insurance | $9,400.00 | $1,900.00 | U | $7,500.00 |
Miscellenous expenses | $18,100.00 | $2,400.00 | U | $15,700.00 |
Total Expenses | $97,600.00 | $2,100.00 | U | $95,500.00 |
Net Income | $3,900.00 | $4,600.00 | U | $8,500.00 |
Abbott Corporation uses customers served as its measure of activity. During December, the company budgeted for...
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35,500 customers, but actually served 31,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.000 Wages and salaries: $33,700 - $1.259 Supplies: $0.654 Insurance: $10,900 Miscellaneous expenses: $6,900 + $0.359 The company reported the following actual results for February Revenue Wages and salaries Supplies Insurance Miscellaneous expense $129,800 $ 68.500...
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,600 customers, but actually served 27,400 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $5.10q Wages and salaries: $34,800 + $1.58q Supplies: $0.98q Insurance: $12,000 Miscellaneous expenses: $8000 + $0.46q The company reported the following actual results for February: Revenue $ 151,800 Wages and salaries $ 69,600 Supplies $ 16,000...
2. Immen Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 38,000 customers. The company has provided the following data concerning the formulas its uses in its budgeting: Fixed element Variable element per month per customer Revenue... $2.70 Wages and salaries $36,300 $0.80 Supplies.. SO $0.30 Insurance $6,900 $0.00 Miscellaneous 56,200 50.20 The company has also furnished its income statement for May: Immen Corporation Income Statement For the Month Ended May 31...
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Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 48,000 customers, but actually served 49,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month Variable element per customer Revenue - $ 3.86 Wages and salaries $ 38,200 $ 1.33 Supplies $ 0 $ 0.63 Insurance $ 8,700 $ 0.00 Miscellaneous expense $ 8,200 $ 0.53 Prepare a report showing the...
Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 48,000 customers, but actually served 49,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month Variable element per customer Revenue - $ 3.86 Wages and salaries $ 38,200 $ 1.33 Supplies $ 0 $ 0.63 Insurance $ 8,700 $ 0.00 Miscellaneous expense $ 8,200 $ 0.53 Prepare a report showing the...
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 Customer served 20,000 27,000 Revenue ($3.509) $ 97,900 $94,500 $3,400 Y Expense! Wages and salaries ($22,700 + $1.17) 55,460 54,290 1.170 U Supplies ($0.579) 13,790 15,390 1.600 F Insurance ($4,600) 4.600 4,600 None...
Cicchetti 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 December: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Results Planning Budget Variances Customers served 38,000 36,000 Revenue ($4.9q) $ 187,200 $ 176,400 $ 10,800 F Expenses: Wages and salaries ($37,500 + $1.7q) 105,600 98,700 6,900 U Supplies ($0.6q) 22,200 21,600 600 U Insurance ($14,500) 14,950...
Cicchetti 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 December: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Results Planning Budget Variances Customers served 31,000 30,000 Revenue (3.50q) $ 108,800 $ 105,000 $ 3,800 F Expenses: Wages and salaries ($23,000 + $1.20q) 60,200 59,000 1,200 U Supplies ($0.60q) 16,100 18,000 1,900 F Insurance ($4,900) 4,900...
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