2.

During September, Clendennen Corporation budgeted for 39,000 customers, but actually served 37,000 customers. The company uses the following revenue and cost formulas in its budgeting, where is the number of customers served: Revenue: $4.52q Wages and salaries: $36,400 + $1.859 Supplies: $0.759 Insurance: $13,400 Miscellaneous expense: $6,400 + $0.25q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month. 37,000 Clendennen Corporation Flexible Budget For the Month Ended September 30 Actual customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income Lenci Corporation manufactures and sells a single product. The company uses units as the measure of activity in its budgets and performance reports. During May, the company budgeted for 5,190 units, but its actual level of activity was 5,140 units. The company has provided the following data concerning the formulas used in its budgeting and its actual results for May: Data used in budgeting: Fixed element per month Variable element per unit $ 40.50 Revenue $ 0 Direct labor Direct materials Manufacturing overhead Selling and administrative expenses Total expenses 42,400 23,600 $66,000 $ 6.40 16.60 2.20 1.10 $26.30 Actual results for May: Revenue Direct labor Direct materials Manufacturing overhead Selling and administrative expenses $198,710 $ 29,465 $ 81,165 $ 52,905 $ 23,580 The spending variance for manufacturing overhead in May would be closest to