During September, Clendennen Corporation budgeted for 24,000 customers, but actually served 27,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:Revenue: $6.00qWages and salaries: $36,700 + $2.10qSupplies: $1.10qInsurance: $12,600Miscellaneous expense: $4,600 + $0.30qRequired:Prepare the company's flexible budget for September based on the actual level of activity for the month.
What will be an ideal response?
| Clendennen Corporation | ||
| Flexible Budget | ||
| For the Month Ended September 30 | ||
| Actual customers served (q) | 27,000 | |
| Revenue ($6.00q) | $ | 162,000 |
| Expenses: | ||
| Wages and salaries ($36,700 + $2.10q) | 93,400 | |
| Supplies ($1.10q) | 29,700 | |
| Insurance ($12,600) | 12,600 | |
| Miscellaneous expense ($4,600 + $0.30q) | 12,700 | |
| Total expense | 148,400 | |
| Net operating income | $ | 13,600 |
Business
You might also like to view...
Quality aesthetics as a source of differentiation are of value only when all other aspects of quality are met with respect to customer quality expectations
Indicate whether the statement is true or false
Business
A firm's code of ethical relativism is a set of standards of behavior that everyone in the firm is expected to follow
Indicate whether the statement is true or false
Business
Answer the following statements true (T) or false (F)
From a lessee’s point of view, a leveraged lease is very different from the other leases.
Business
Capacity planning for the ______. time range is called capacity requirements planning (CRP).
a. short b. long c. medium d. extended
Business