Question
Apple Corporation uses customers served as its measure of activity. Its budget assumption and actual customers served are shown below as well as the static
| Apple Corporation uses customers served as its measure of activity. | |||||||
| Its budget assumption and actual customers served are shown below | |||||||
| as well as the static budget assumptions for the month of November. | |||||||
| Budget level | 36,000 | q or Customers | |||||
| Actual level | 41,000 | q or Customers | |||||
| Budget Assumptions: | |||||||
| Revenue | $2.50 | q | |||||
| Wages and salaries: | |||||||
| Fixed | $21,500 | ||||||
| Variable | $0.70 | q | |||||
| Supplies | $0.40 | q | |||||
| Insurance | |||||||
| Fixed | $6,100 | ||||||
| Miscellaneous | |||||||
| Fixed | $3,700 | ||||||
| Variable | $0.40 | q | |||||
| The company reported the following actual results for November. | |||||||
| Revenue | $105,000 | ||||||
| Wages and salaries | $45,900 | ||||||
| Supplies | $17,200 | ||||||
| Insurance | $6,300 | ||||||
| Miscellaneous | $17,600 | ||||||
| Prepare the company's flexible budget performance report for November. | |||||||
| Label each variance as favorable (F) or unfavorable (U). NEED all Five Columns. | |||||||
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Cost Accounting A Managerial Emphasis
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
15th edition
978-0133428704
