Question
Ocean Corporation uses customers served as its measure of activity. During June, the company budgeted for 21,000 customers, but actually served 19,000 customers. The
Ocean Corporation uses customers served as its measure of activity. During June, the company budgeted for 21,000 customers, but actually served 19,000 customers. The company bases its budgets on the following information: Revenue should be $5.00 per customer served. Wages and salaries should be $24,900 per month plus $1.80 per customer served. Supplies should be $0.90 per customer served. Insurance should be $6,500 per month. Miscellaneous expenses should be $3,500 per month plus $0.40 per customer served. The company reported the following actual results for June: Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: 6 96,400 $ 59,600 $ 18,300 $ 6,200 $ 13,600 Prepare the company's flexible budget performance report for June. Label each variance as favorable (F) or unfavorable (U).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started