11 During May, Hiles Corporation budgeted for 31,000 customers, but actually served 29,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served Revenue: $4.61q Wages and salaries: $35,600+$1.77q Supplies: $0.67q Insurance: $12,600 Miscellaneous expense: $5,600+$0.17q Prepare the company's flexible budget for May Revenue Expenses Wages and salaries Supplies Insurance Miscellaneous expense Total Expenses Net Operating income A favorable spending variance occurs when the actual cost exceeds the amount of cost in the static planning budget 2