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
