Problem 6: Flexible Budgets (11 Points) 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 50. Wages and salaries expense is a mixed cost, supplies expense is a variable cost, and transportation expense is a fixed cost. A report comparing the actual revenues and costs to the budgeted revenues and costs appears below (revenue and cost formulas are reported in parentheses): J&J Co. For the Month Ended March 31 Actual Results Planning Budget Number of jobs (Q) 50 60 $ 6,000 $ 6,600 Revenue ($1100) Expenses: Wages and salaries ($400+$600) Supplies (?) Transportation (?) $ 3,600 1,600 550 $ 4,000 1,800 500 Total expenses Net operating income 5,750 250 6,300 300 $ $ (a) What amount of supplies expense would be reported in the flexible budget income statement for March? (2 points) (b) Calculate the revenue variance for March. Be sure to indicate whether the revenue variance is favorable or unfavorable. Please note this question asks for revenue variance rather than activity variance for revenue. points) (c) Calculate the spending variance for transportation expense for March. Be sure to indicate whether the spending variance is favorable or unfavorable. (3 points) (d) Calculate the activity variance for wages and salaries expense in March. Be sure to indicate whether the activity variance is favorable or unfavorable. (3 points)