Problem 4 Flesible Bedget, Revenue and Spending Variances 13 points The cost structune for Midnight Coporation in the table below Foved Cost per Month Cont per unit S 11.800.00 Wages and sa laries Supplies Equipment Rental Insurance Miscellaneous Prepare a Flexible Badget for Midnight at its actual sales volume of 390 units 128.00 6.00 2.300.00 S 4.100.00 22.00 540.00 S 1.40 Expected revenue in S380 unit Use the template below Midnight's actual eperating results for June are shown in the Incem e ment below Minght Corpsraion Milrght Corporation Income Statemment Fee the Month Ended June 30 Fr the Month Endod Juse 30 Actual units sold 390 Actual units sold 390 Revenue Expenses Wages and salaries Supplies Equipment Rental 148,200 Revenue Expenses Wages and salaries |Supplies Equipment Rental Insurance Miscellaneous Total expense Net operating income- 145,700 61.720 60.500 2560 10,000 Insurance 4.100 Miscellaneous Total expense Net operating income 1,350 78,510 67.190 Cakulate the company's revenue and spending variance for June in the template below. of each variance by writing "F" for favorable, "U for unfavorable, and "None" for no effect Indicate the effect Midnight Corporation Revenue and Spending Variances For the Month Ended lune 30 F/U/None Dollars Revenue 2,500 U Expenses Wages and salaries Supplies Equipment Rental Insurance Miscellaneous Total expense Net operating income 12 Problem 4 13 points Flexible Budget, Revenue and Spending Variances The cost structure for Midnight Corporation is in the table below Fixed Cost per Month Cost per unit $ 11,800.00 $ Wages and salaries Supplies 128.00 6.00 Equipment Rental $ 2,300.00 $ 4,100.00 22.00 Insurance Miscellaneous 540.00 $ 1.40 Prepare a Flexible Budget for Midnight at its actual sales volume of 390 units. unit. ment below. Expected revenue is $380 per Midnights actual operating results for June are shown in the Income State- Use the template below. Midnight Corporation Flexible Budget For the Month Ended June 30 Midnight Corporation Income Statement For the Month Ended June 30 Actual units sold 390 Actual units sold 390 Revenue 148,200 Revenue S 145,700 Expenses Wages and salaries Supplies Equipment Rental Expenses Wages and salaries Supplies Equipment Rental Insurance Miscellaneous Total expense Net operating income 61,720 60,500 2,560 10,000 Insurance 4,100 Miscellaneous Total expense Net operating income 1,350 78,510 67,190 Calculate the company's revenue and spending variance for June in the template below. Indicate the effect of each variance by writing "F" for favorable, "U" for unfavorable, and. "None" for no effect. Midnight Corporation Revenue and Spending Variances For the Month Ended June 30 F/U/None Dollars Revenue S 2,500 Expenses: Wages and salaries Supplies Equipment Rental Insurance Miscellaneous Total expense Net operating income
