ABC Corporation uses customers served as its measure of activity. During February, the company budgeted for 37,000 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: $5.50q Wages and salaries: $35, 200 + $1.70q Supplies: $1.10q Insurance: $12, 400 Miscellaneous expenses: S8, 400 + $0.50q The company reported the following actual results for February: Revenue $ 159,800 Wages and salaries $ 70,000 Supplies S 16,400 Insurance $ 12,400 Miscellaneous expense S 27,700 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

ABC Corporation uses customers served as its measure of activity. During February, the company budgeted for 37,000 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: $5.50q Wages and salaries: $35, 200 + $1.70q Supplies: $1.10q Insurance: $12, 400 Miscellaneous expenses: S8, 400 + $0.50q The company reported the following actual results for February: Revenue $ 159,800 Wages and salaries $ 70,000 Supplies S 16,400 Insurance $ 12,400 Miscellaneous expense S 27,700 Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1CMA: Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for...

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