During September, Clendennen Corporation budgeted for 42,000 customers, but actually served 40,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:

Revenue: $4.55q

Wages and salaries: $36,700 + $1.88q

Supplies: $0.78q

Insurance: $13,700

Miscellaneous expense: $6,700 + $0.28q

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	40,000
Revenue
Expenses:
Wages and salaries
Supplies
Insurance
Miscellaneous expense
Total expense
Net operating income