A company planned on serving 31,000 customers during the period. The following lists budgeted rates for revenues
Question:
A company planned on serving 31,000 customers during the period. The following lists budgeted rates for revenues and expenses. The variable "q" stands for quantity:
Revenue = $3.60q
Wages and Salaries Expense = $27,000 + $1.20q
Supplies Expense = $0.50q
Insurance Expense = $8,100
Other Expense = $6,900 + $0.40q
Actual Results for the period are shown in the table below:
Customers served | 28,800 |
Revenue | $102,500 |
Wages and Salaries Expense | $51,300 |
Supplies Expense | $17,800 |
Insurance Expense | $8,000 |
Other Expense | $14,300 |
a) What amount would appear in the planning budget for Supplies expense?
b) What amount would appear in the flexible budget for Insurance Expense?
c) What is the activity variance for Wages and Salaries Expense? Make sure to indicate whether the variance is Favorable (F) of Unfavorable (U).
d) What is the Revenue (i.e., of the Revenue and Spending Variance category) variance for Revenue? Make sure to indicate whether the variance is Favorable (F) or Unfavorable (U).