7. Gordon Corporation bases its budgets on the activity measure customers served. During April, the company planned to serve 25,000 customers, but actually served 29,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:

	Fixed cost per month	Variable cost per customer
Revenue		$3.10
Wages and salaries	$23,700	$0.80
Supplies	$0	$0.60
Insurance	$5,300	$0.00
Miscellaneous expense	$3,200	$0.20

Required: Prepare Gordons flexible budget for April based on the actual level of activity.

8. Answer these questions:

What department budget is the first budget created each year? Why?

What budgets are created next (in the correct order)? Why in this order?