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 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 Miscellaneous expense ($3,600 + $0.379) 11,990 13,590 1,600 F Total expense 85,840 87,870 2,030 P Net operating income $12,060 $ 6,630 $5,930 F

Answer 1

Solution:

Bickel Corporation
Flexible Budget Performance Report
For the year
Particulars	Actual results	Revenue and spending variances		Flexible Budget	Activity Variances		Planning Budget
Customers served	28000			28000			27000
Revenue	$97,900.00	$100.00	U	$98,000.00	$3,500.00	F	$94,500.00
Expenses:
Wages and salaries	$55,460.00	$0.00	None	$55,460.00	$1,170.00	U	$54,290.00
Supplies	$13,790.00	$2,170.00	F	$15,960.00	$570.00	U	$15,390.00
Insurance	$4,600.00	$0.00	None	$4,600.00	$0.00	U	$4,600.00
Miscellenaeous Expenses	$11,990.00	$1,970.00	F	$13,960.00	$370.00	None	$13,590.00
Total Expenses	$85,840.00	$4,140.00	F	$89,980.00	$2,110.00	U	$87,870.00
Net operating income	$12,060.00	$4,040.00	F	$8,020.00	$1,390.00	F	$6,630.00