Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35300 customers. but actually served 33.400 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served Revenue: $3.60g Wages and salaries: $33,300+ $113g Supplies: $0.53q Insurance: $10,500 Miscellaneous expenses: $6,500 $0.31q The company reported the following actual results for February Revenue Mages and salariss Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. 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 (.e., zero wariance). Input all amounts as positive values.) ustomers served venue $ 121,000 $ 66,100 $ 14,500 # 10,500 $ 18,200 Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 33,400 Revenue and Spending Flexible Budget Variances 33,400 Activity Variances Planning Budget 35,100

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 35300 customers. but actually served 33.400 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served Revenue: $3.60g Wages and salaries: $33,300+ $113g Supplies: $0.53q Insurance: $10,500 Miscellaneous expenses: $6,500 $0.31q The company reported the following actual results for February Revenue Mages and salariss Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. 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 (.e., zero wariance). Input all amounts as positive values.) ustomers served venue $ 121,000 $ 66,100 $ 14,500 # 10,500 $ 18,200 Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28 Actual Results 33,400 Revenue and Spending Flexible Budget Variances 33,400 Activity Variances Planning Budget 35,100

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.2.6P: Budgeted income statement and supporting budgets The budget director of Jupiter Helmets Inc., with...

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