3. Flexible budget, planning budget, activity variances - During September, ComeHome Corporation budgeted for 36,500 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Solution a:
Comehome corporation | |
Planning Budget | |
For the month ended August 31 | |
Particulars | Plannint Budget |
Nos of customer served | 36500 |
Revenue | $1,102,300.00 |
Expenses: | |
Wages | $456,250.00 |
Supplies | $153,300.00 |
Insurance | $17,400.00 |
Miscellaneous expense | $99,600.00 |
Total Expenses | $726,550.00 |
Net Operating Income | $375,750.00 |
Solution b:
Comehome corporation | |
Felxible Budget | |
Particulars | Flexible Budget |
Nos of customer served | 35000 |
Revenue | $1,057,000.00 |
Expenses: | |
Wages | $437,500.00 |
Supplies | $147,000.00 |
Insurance | $17,400.00 |
Miscellaneous expense | $96,000.00 |
Total Expenses | $697,900.00 |
Net Operating Income | $359,100.00 |
Solution c:
Comehome corporation | ||||
Acitivity Variances | ||||
Particulars | Flexible Budget | Activity Variances | Planning Budget | |
Nos of customer served | 35000 | 36500 | ||
Revenue | $1,057,000.00 | $45,300.00 | U | $1,102,300.00 |
Expenses: | ||||
Wages | $437,500.00 | $18,750.00 | F | $456,250.00 |
Supplies | $147,000.00 | $6,300.00 | F | $153,300.00 |
Insurance | $17,400.00 | $0.00 | U | $17,400.00 |
Miscellaneous expense | $96,000.00 | $3,600.00 | F | $99,600.00 |
Total Expenses | $697,900.00 | $28,650.00 | F | $726,550.00 |
Net Operating Income | $359,100.00 | $16,650.00 | U | $375,750.00 |
3. Flexible budget, planning budget, activity variances - During September, ComeHome Corporation budgeted for 36,500 customers,...
3. Flexible budget, planning budget, activity variances - During September, ComeHome Corporation budgeted for 36,500 customers, but actually served 35,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $30.20q Wages: $12.50q Supplies: $4.20q Insurance: $17,400 per month Miscellaneous expense: $12,000 month + $2.40q Prepare the company's planning budget for September (use Thursday’s lecture slides and exhibit 9-2 of your text as a guide). Prepare the company's...
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...
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...
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...
Prepare a flexible budget performance report that shows both
revenue and spending variances and activity variances for
September:
The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 64 students enrolled in those two courses. Data concerning the company's...
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...
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...
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 Results Planning Budget 39,000 $132,600 Variances Customers served 40,000 $136,000 Revenue ($3.40q) $3,400 F Expenses Wages and salaries ($23,900$1.29q) Supplies ($0.69q) Insurance ($5,800) Miscellaneous expense ($4,800 $0.38q)...