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J&J Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of March, the company budgeted for
J&J Co. provides house cleaning services. The company uses the number of jobs to measure activity. At the beginning of March, the company budgeted for 60 jobs, but the actual number of jobs turned out to be 70. Wages and salaries expense is a mixed cost. Supplies expense is a variable cost. Transportation expense is a fixed cost. Here is a report comparing the actual vs. budgeted revenues and costs for the month of March:
What is the amount of Supplies Expense in the Flexible Budget?
\begin{tabular}{|c|c|c|} \hline Expenses: & & \\ \hline \begin{tabular}{l} - Wages \& Salaries (\$400 \\ + \$60Q) \end{tabular} & $4,800 & $4,000 \\ \hline Supplies ( ?) & 1,700 & 1,500 \\ \hline - Transportation (? ) & 560 & 420 \\ \hline Total Expenses & $7,060 & $5,920 \\ \hline Net Operating Income & $740 & $680 \\ \hline \end{tabular}Step by Step Solution
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