Question
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December:
Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 | |||||||||||
Actual Results | Planning Budget | Variances | |||||||||
Customers served | 35,000 | 30,000 | |||||||||
Revenue ($4.9q) | $ | 172,350 | $ | 147,000 | $ | 25,350 | F | ||||
Expenses: | |||||||||||
Wages and salaries ($37,200 + $1.7q) | 99,900 | 88,200 | 11,700 | U | |||||||
Supplies ($0.7q) | 24,050 | 21,000 | 3,050 | U | |||||||
Insurance ($14,200) | 14,500 | 14,200 | 300 | U | |||||||
Miscellaneous expense ($7,200 + $0.5q) | 26,500 | 22,200 | 4,300 | U | |||||||
Total expense | 164,950 | 145,600 | 19,350 | U | |||||||
Net operating income | $ | 7,400 | $ | 1,400 | $ | 6,000 | F | ||||
Required:
Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or "None".
Cicchetti corportation flexible budget performance report part 1 for month ended december 31
actual results revenure and spending variances flexible budger
Customers server
-----------------------
Expenses:
Total expenses
net operating income
Cicchetti corportation flexible budget performance report part 2 for month ended december 31
flexible budget activity variances planning budget
Customers server
-----------------------
Expenses:
Total expenses
net operating income
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