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Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,400 customers, but actually served 27,600 customers. The company
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,400 customers, but actually served 27,600 customers. The company uses the following revenue and cost formulas in its budgeting, where the number of customers served: Revenue: $4.90q Wages and salaries: $34,600 + $1.52q Supplies: $0.92q Insurance: $11,800 Miscellaneous expenses: $7,800 $0.44q The company reported the following actual results for February: $147,800 $ 69,400 $ 15,800 $ 11,800 $ 24,700 Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Arrasmith Corporation Flexible Budget Performance Report For the Month Ended February 28 Revenue and Flexible lanning Budget Activity V Spending Variances eculte Budget 27,600 36,400 Customers served 27,600 Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income
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