During October, Fryer Corporation budgeted for 30,000 customers, but actually served 33,000 customers. Revenue should be $2.90 per customer served. Wages and salaries should be $27,200 per month plus $0.80 per customer served. Supplies should be $0.60 per customer served. Insurance should be $6,700 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.Required:Prepare the company's flexible budget for October based on the actual level of activity for the month.
What will be an ideal response?
| Fryer Corporation | ||
| Flexible Budget | ||
| For the Month Ended October 31 | ||
| Actual customers served (q) | 33,000 | |
| Revenue ($2.90q) | $ | 95,700 |
| Expenses: | ||
| Wages and salaries ($27,200 + $0.80q) | 53,600 | |
| Supplies ($0.60q) | 19,800 | |
| Insurance ($6,700) | 6,700 | |
| Miscellaneous expense ($3,100 + $0.10q) | 6,400 | |
| Total expense | 86,500 | |
| Net operating income | $ | 9,200 |
You might also like to view...
Which of the following represents a reason why competitive advantages are typically temporary?
A. The competitor quickly seeks ways to duplicate your business operations. B. The competitor will purchase new technology. C. The competitor will hire away your key employees. D. All of these.
With respect to a landlord evicting a commercial tenant for breach of a term of the lease other than one involving rent which of the following statements is TRUE?
A) The landlord must give notice of a breach to the tenant B) The notice of the breach given to the tenant must be accurate in every detail C) The tenant must be permitted a reasonable period of time to remedy the breach D) A and C E) All of the above
Antisolicitation statutes cannot be specifically directed at real estate agents and brokers
Indicate whether the statement is true or false
What is a tort?