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During September, Clendennen Corporation budgeted for 34,000 customers, but actually served 32,000 customers. The company uses the following revenue and cost formulas in its budgeting,
During September, Clendennen Corporation budgeted for 34,000 customers, but actually served 32,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.64q Wages and salaries: $35,900 + $1.80q Supplies: $0.70q Insurance: $12,900 Miscellaneous expense: $5,900 + $0.20q Required: Prepare the company's flexible budget for September based on the actual level of activity for the month. Clendennen Corporation Flexible Budget For the Month Ended September 30 Actual customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income 32,000
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