Abernathy Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below. The variable component column shows the variable cost per customer.

Fixed Component		Variable Component	Actual
Revenue		$8,500	$435,000
Salaries and Wages	$125,000	$1,750	$230,000
Travel Expenses		$950	$50,000
Other Expenses	$65,000		$67,000

When preparing its planning budget, the company estimated that it would serve 40 customers per month; however, during May the company actually served 50 customers.

Please answer the following questions or complete the required task. Show all of your work. Round all answers to two decimal places. Please read the questions carefully.

A.) Fill out Abernathys planning budget for May.

B.) Fill in the activity variances and identify if they are favorable or unfavorable variances.

Planning Budget (40 Customers) Activity Variance Favorable/Unfavorable?

Revenue

Salaries and Wages

Travel Expenses

Other Expenses

Operating Income

C.) Fill out Abernathys flexible budget for May.

D.) Fill in the revenue/expense variances and identify if they are favorable or unfavorable variances.

Flexible Budget (50 Customers) Revenue/Spending Variance Favorable/Unfavorable?

Revenue

Salaries and Wages

Travel Expenses

Other Expenses

Operating Income