Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Magliacane Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable

Magliacane Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.

Fixed Element per Month Variable Element per Customer Served
Revenue $ 4,300
Employee salaries and wages $ 58,100 $ 1,200
Travel expenses $ 700
Other expenses $ 31,900

When the company prepared its planning budget at the beginning of February, it assumed that 39 customers would have been served. However, 35 customers were actually served during February.

The revenue in the company's flexible budget for February would have been closest to:

$153,200

$170,709

$167,700

$150,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

QuickBooks Step-by-Step Guide To Bookkeeping And Accounting For Beginners

Authors: Kevin Ellis

1st Edition

1951345126, 978-1951345129

More Books

Students also viewed these Accounting questions

Question

Why is job analysis considered to be a basic HR tool?

Answered: 1 week ago

Question

5.1 Define recruitment and describe the recruitment process.

Answered: 1 week ago