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Vera Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 29,000 customers, but actually served 28,600 customers.
Vera Corporation bases its budgets on the activity measure customers served. During September, the company planned to serve 29,000 customers, but actually served 28,600 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
| Fixed element per month | Variable element per customer | |||||
| Revenue | - | $ | 8.20 | |||
| Wages and salaries | $ | 36,000 | $ | 3.50 | ||
| Supplies | $ | 0 | $ | 1.40 | ||
| Insurance | $ | 13,100 | $ | 0.00 | ||
| Miscellaneous | $ | 7,550 | $ | 1.00 | ||
| Required: |
| Prepare the company's flexible budget for September based on the actual level of activity for the month. (Input all amounts as positive values.) |
| Vera Corporation Flexible Budget For the Month Ended September 30 | |
| Revenue | $ |
| Expenses: | |
| Wages and salaries | |
| Supplies | |
| Insurance | |
| Miscellaneous | |
| Total expense | |
| Net operating income | $ |
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