Rameriz Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.??Fixed Element per MonthVariable Element per Container Refurbished?Revenue?$4,900?Employee salaries and wages$42,800$1,200?Refurbishing materials?$700?Other expenses$38,200?A total of 34 containers were actually refurbished during May.Required:Prepare a flexible budget for the actual level of activity for May.
What will be an ideal response?
| ? | ? | Flexible Budget |
| ? | Containers refurbished (q) | 34 |
| ? | Revenue ($4,900q) | $166,600 |
| ? | Expenses: | ? |
| ? | Employee salaries and wages ($42,800 + $1,200q) | 83,600 |
| ? | Refurbishing materials ($700q) | 23,800 |
| ? | Other expenses ($38,200) | 38,200 |
| ? | Total expenses | 145,600 |
| ? | Net operating income | $21,000 |
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