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 | 25,000 | 24,000 | ||||||
Revenue ($3.50q) | $ | 87,500 | $ | 84,000 | $ | 3,500 | F | |
Expenses: | ||||||||
Wages and salaries ($22,400 + $1.14q) | 50,900 | 49,760 | 1,140 | U | ||||
Supplies ($0.54q) | 11,660 | 12,960 | 1,300 | F | ||||
Insurance ($4,300) | 4,300 | 4,300 | 0 | None | ||||
Miscellaneous expense ($3,300 + $0.34q) | 10,160 | 11,460 | 1,300 | F | ||||
Total expense | 77,020 | 78,480 | 1,460 | F | ||||
Net operating income | $ | 10,480 | $ | 5,520 | $ | 5,460 | 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.)
Bickel Corporation | ||||||||
Flexible Budget Report | ||||||||
For the month ended November 30 | ||||||||
Actual results | Revenue and Spending Variances | Flexible Budget | Activity Variance | Planning Budget | ||||
Customers | (q) | 25000 | 25000 | 24000 | ||||
Revenue | ($3.50 * q) | $ 87,500 | $ 0 | None | $ 87,500 | $ 3,500 | F | $ 84,000 |
Expenses: | ||||||||
Wages and salaries | [$22400 + ($1.14 * q)] | $ 50,900 | $ 0 | None | $ 50,900 | $ 1,140 | U | $ 49,760 |
Supplies | ($0.54* q) | $ 11,660 | $ 1,840 | F | $ 13,500 | $ 540 | U | $ 12,960 |
Insurance | $ 4,300 | $ 4,300 | $ 0 | None | $ 4,300 | $ 0 | None | $ 4,300 |
Miscellaneous | [$3300 + ($0.34 * q)] | $ 10,160 | $ 1,640 | F | $ 11,800 | $ 340 | U | $ 11,460 |
Total expenses | $ 77,020 | $ 3,480 | F | $ 80,500 | $ 2,020 | U | $ 78,480 | |
Net income | $ 10,480 | $ 3,480 | F | $ 7,000 | $ 1,480 | F | $ 5,520 |
If it is helpful, please rate the answer and if any doubt arises let me know
Bickel Corporation | ||||||||
Flexible Budget Report | ||||||||
For the month ended November 30 | ||||||||
Actual results | Revenue and Spending Variances | Flexible Budget | Activity Variance | Planning Budget | ||||
Customers | (q) | 25000 | 25000 | 24000 | ||||
Revenue | ($3.50 * q) | $ 87,500 | $ 0 | None | $ 87,500 | $ 3,500 | F | $ 84,000 |
Expenses: | ||||||||
Wages and salaries | [$22400 + ($1.14 * q)] | $ 50,900 | $ 0 | None | $ 50,900 | $ 1,140 | U | $ 49,760 |
Supplies | ($0.54* q) | $ 11,660 | $ 1,840 | F | $ 13,500 | $ 540 | U | $ 12,960 |
Insurance | $ 4,300 | $ 4,300 | $ 0 | None | $ 4,300 | $ 0 | None | $ 4,300 |
Miscellaneous | [$3300 + ($0.34 * q)] | $ 10,160 | $ 1,640 | F | $ 11,800 | $ 340 | U | $ 11,460 |
Total expenses | $ 77,020 | $ 3,480 | F | $ 80,500 | $ 2,020 | U | $ 78,480 | |
Net income | $ 10,480 | $ 3,480 | F | $ 7,000 | $ 1,480 | F | $ 5,520 |
If it is helpful, please rate the answer and if any doubt arises let me know
Bickel Corporation uses customers served as its measure of activity. The following report compares the planning...
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...
7 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 Planning Results Budget Variances Customers served 23,000 22,000 Revenue ($3.509) $80, 400 $77,000 $3,400 F Expenses: Wages and salaries ($22,200 + $1.129) 47,960 46,840 1,120 U Supplies ($0.529) 10, 340 11,440 1,100 F Insurance ($4,100) 4,100...
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...
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Check my work TB Problem Qu. 9-389 Bickel Corporation uses customers served as... 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 Planning Budget 34,000 Variances Results Customers served Revenue ($3.50q) Expenses: Wages and salaries ($23,400 + $1.24q) Supplies ($0.64q) Insurance ($5,300) Miscellaneous expense ($4,300 +...
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