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Chapter 7 Flexible budgeting and performance evaluation Copr. Goedl 2 0 2 3 Owensville Pool Service is preparing a Flexible Budget Performance report for the

Chapter 7 Flexible budgeting and performance evaluation
Copr. Goedl 2023Owensville Pool Service is preparing a Flexible Budget Performance report for the month of July. Data for the planning budget and the actual results are provided below.
Planning budget cost formulas
Estimated units of production 15,000
Sales $16Q
Wages and salaries $36,000
Employee benefits $12,000
Supplies $4Q
Rent expense $5,000
Utilities $900 plus $0.25Q
Misc. expenses $8,500 plus $1.50Q
Actual results
Actual units of production 12,400
Sales $192,200
Wages and salaries $36,000
Employee benefits $12,400
Supplies $54,560
Rent expense $5,000
Utilities $3,380
Misc. expenses $26,800
Calculate the revenue/spending variance for Net operating income.
Group of answer choices
$(10,640)
$26,650
$(26,650)
$10,640

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