Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 41,000 customers, but actually served 39,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Fixed element per month $ 37,500 $0 $ 8,500 $ 7,500 Variable element per customer $ 3.86 $ 1.26 $ 0.56 $ 0.00 $ 0.46 Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U). Note: 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.

Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 41,000 customers, but actually served 39,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Fixed element per month $ 37,500 $0 $ 8,500 $ 7,500 Variable element per customer $ 3.86 $ 1.26 $ 0.56 $ 0.00 $ 0.46 Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is favorable (F) or unfavorable (U). Note: 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.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter22: Budgeting

Section: Chapter Questions

Problem 2E: Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a...

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Digital Solutions Inc. uses flexible budgets that are based on the following data: Prepare a flexible selling and administrative expenses budget for October for sales volumes of 500,000, 750,000, and 1,000,000.
Varriano Corporation bases its budgets on the activity measure customers served. During October, the company planned to serve 46,000 customers, but actually served 47,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income Required: Prepare a report showing the company's activity variances for October. Indicate in each case whether the variance is 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.) Fixed element per month Flexible Budget $ 38,000 $0 $ 8,500 $ 8,000 Varriano Corporation Activity Variances For the Month Ended October 31 47,000 Planning Budget Variable element per…
Hi, can explain to me step by step? TQ Squillace Corporation uses customers served as its measure of activity. During October, the company budgeted for 38,000 customers, but actually served 35,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Squillace Corporation uses customers served as its measure of activity. During October, the company budgeted for 38,000 customers, but actually served 35,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October. Required:Prepare the company's flexible budget performance report for October (calculate both activity variances and revenue and spending variances). Label each variance as favorable (F) or unfavorable (U). Use the templates given below.
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Dinham Kennel uses tenant-days as Its measure of activity; an anlmal housed in the kennel for one day Is counted as one tenant-day. During March, the kennel budgeted for 4,600 tenant-days, but Its actual level of activity was 4,670 tenant-days. The kennel has provided the following data concerning the formulas used in Its budgeting and Its actual results for March: Data used in budgeting: Fixed element Variable element per month per tenant-day Revenue $ 35.10 Wages and salaries Food and supplies Facility expenses Administrative expenses $ 3,500 8.50 1,000 15.00 9,000 4.00 7,500 0.40 Total expenses $ 21,000 $4 27.90 Actual results for March: Revenue $143,330 Wages and salaries Food and supplies Facility expenses Administrative expenses $ 28,650 $ 71,345 $ 27,130 $ 7,105 The spending varlance for food and supplies In March would be closest to: Multiple Cholce $1,345 F $1,345 U $295 F $295 U
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Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November: Customers served Revenue ($3.60g) Expenses: Wages and salaries ($25,600+ $1.20g) Supplies ($0.50g) Insurance ($ 7,400) Miscellaneous expense ($6,200 + $0.40g) Total expense Net operating income. Customers served Revenue Expenses: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Wages and salaries Supplies Insurance Miscellaneous expense Total expense Required: Prepare the company's flexible budget performance report for November. 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.) Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Actual Results…
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Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December: Cicchetti CorporationComparison of Actual Results to Planning BudgetFor the Month Ended December 31 Actual Results Planning Budget Variances Customers served 42,000 38,000 Revenue ($5.0q) $ 211,200 $ 190,000 $ 21,200 F Expenses: Wages and salaries ($37,900 + $1.8q) 117,400 106,300 11,100 U Supplies ($0.6q) 24,400 22,800 1,600 U Insurance ($14,900) 15,550 14,900 650 U Miscellaneous expense ($7,900 + $0.5q) 31,050 26,900 4,150 U Total expense 188,400 170,900 17,500 U Net operating income $ 22,800 $ 19,100 $ 3,700 F Required:Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or…