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
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