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Svetach [21]
1 year ago
14

Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,000 custome

rs, but actually served 28,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.50q
Wages and salaries: $34,200 + $1.40q
Supplies: $0.80q
Insurance: $11,400
Miscellaneous expenses: $7,400 + $0.40q

The company reported the following actual results for February:

Revenue $139,800
Wages and salaries $69,000
Supplies $15,400
Insurance $11,400
Miscellaneous expense $22,700

Required:
Prepare the company's flexible budget performance report for February.
Business
1 answer:
KengaRu [80]1 year ago
3 0

Answer:

Arrasmith Corporation

Flexible Budget Performance Report For February:

                                          Flexible      Actual       Variance

                                          Budget      Budget

Revenue                          $126,000  $139,800   $13,800 F

Wages and salaries          $73,400   $69,000    $4,400  F

Supplies                              22,400      15,400       7,000  F

Insurance                             11,400        11,400        0        None

Miscellaneous expense     18,600      22,700      (4,100)  U

Total expenses              $125,800   $118,500     $7,300  F

Explanation:

a) Data and Calculations:

Budgeted customers served = 36,000

Actual customers served = 28,000

Actual Results for February:

Revenue $139,800

Wages and salaries $69,000

Supplies $15,400

Insurance $11,400

Miscellaneous expense $22,700

Total expenses $118,500

Revenue and Cost Formulas:

Revenue: $4.50q

Wages and salaries: $34,200 + $1.40q

Supplies: $0.80q

Insurance: $11,400

Miscellaneous expenses: $7,400 + $0.40q

Flexing the budget with the Revenue and Cost Formulas:

Revenue: $4.50 * 28,000 = $126,000

Wages and salaries: $34,200 + $1.40 * 28,000 = $73,400

Supplies: $0.80 * 28,000 = $22,400

Insurance: $11,400

Miscellaneous expenses: $7,400 + $0.40 * 28,000 = $18,600

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       cout << "Player " << i + 1 << " -- "

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       cin >> option;

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