Given below the 2PM’s Hairstyling information for the month ended June 30:

a) Revenue and cost formula

Budgeted client-visits                     q

Revenue                          RM180q

Wages and salaries                     RM65,000 + RM37q

Hairstyling supplies                     RM1.50q

Client gratuities                           RM4.10q

Electricity                                   RM1500 + RM0.10q

Rent                                           RM28,500

Liability insurance            RM2,800

Employee health insurance           RM21,300

Miscellaneous                              RM1,200 + RM0.20q

b) The budgeted client-visits were 1,000.

c) Income statement for the month ended June 30:

2PM’s Hairstyling Income Statement For the month ended June 30
Actual client-visits	1100
	RM
Revenue	194,200
Expenses:
Wages and salaries	106,900
Hairstyling supplies	1,620
Client gratuities	6,870
Electricity	1,550
Rent	28,500
Employee health insurance	22,600
Miscellaneous	2,130

Required: 

Prepare the Flexible Budget Performance Report for the month ended June 30 combining Activity Variances with Revenue and Spending variances. 

Answer rating: 100% (QA)

Step 1 The flexible budget varies according ... View the full answer