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A company planned on serving 31,000 customers during the period. The following lists budgeted rates for revenues and expenses. The variable q stands for qua
A company planned on serving 31,000 customers during the period. The following lists budgeted rates for revenues and expenses. The variable "q" stands for qua Revenue = $3.60q Wages and Salaries Expense = $27,000 + $1.20q Supplies Expense = $0.50q Insurance Expense = $8,100 Other Expense = $6,900 + $0.40q Actual Results for the period are shown in the table below: Customers served 28,800 Revenue $102,500 Wages and Salaries Expense $51,300 Supplies Expense $17,800 Insurance Expense $8,000 Other Expense $14,300 a) What amount would appear in the planning budget for Wages and Salaries expense? b) What amount would appear in the flexible budget for Supplies Expense? c) What is the activity variance for Revenue? Make sure to indicate whether the variance is Favorable (F) of Unfavorable (U). d) What is the spending variance for Insurance? Make sure to indicate whether the variance is Favorable (F) or Unfavorable (U)
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