Nel Upel alily lilure 3.UUU D. Use the flexible budget to compute REVENUE and SPENDING variances: because of cost control abilities Larry's Lawn Service For the Month Ended June 30 From (A) From (B) From (A) Revenue and Spending Revenue/Cost Planning Flexible Actual variances (Actual - Formulas Budget Budget Results Flexible budget) Note: Planning vs. Flexible: Only change 500 to 550 Revenue & Cost formula no chat Favorable? Flexible vs. Actual: Hold constant the 550, Revenue & Cost formula change Number of lawns (Q) 500 550 550 | 18 | 03 | JU |- | 0 0 Revenue ($750) $ 37,500 $ 41,250 $ 43,000 Expenses Wages and salaries ($5,000 + $300) $ 20,000 $ 21,500 $ 23,500 Gasoline and supplies ($90) 4,500 4,950 5,100 Equipment maintenance ($3Q) 1,500 1,650 1,300 Office and shop utilities ($1,000) 1,000 1,000 950 Office and shop rent ($2,000) 2,000 2,000 2,000 Equipment Depreciation ($2,500) 2,500 2,500 2,500 Insurance ($1,000) 1.000 1.000 1,200 1 Total expenses 32,500 34,600 36,550 Net operating income $ 5,000 $ 6,650 $ 6,450 3 Questions 8 Assuming 550 lawns are serviced, actual revenue is 43,000, budgeted revenue is 41,250. So, what is the actual price being charged to mow a lawn? vs. $75 9 Assuming 550 lawns are serviced, actual gasoline expense is 5,100, budgeted gasoline expense is 4,950. So, what is the actual gasoline cost to mow a lawn? vs. $9 SU UT