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During September, Clendennen Corporation budgeted for 40,000 customers, but actually served 38,000 customers. The company uses the following revenue and cost formulas in its budgeting,
During September, Clendennen Corporation budgeted for 40,000 customers, but actually served 38,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.539 Wages and salaries: $36,500 + $1.86q Supplies: $0.769 Insurance: $13,500 Miscellaneous expense: $6,500 + $0.269 Required: Prepare the company's flexible budget for September based on the actual level of activity for the month. 38,000 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
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