Question

Bickel Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of November:

Bickel Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended November 30
	Actual Results			Planning Budget		Variances
Customers served		36,000			35,000
Revenue ($3.40q)	$	122,300		$	119,000	$	3,300	F
Expenses:
Wages and salaries ($23,500 + $1.25q)		68,500			67,250		1,250	U
Supplies ($0.65q)		20,450			22,750		2,300	F
Insurance ($5,400)		5,400			5,400		0	None
Miscellaneous expense ($4,400 + $0.34q)		14,000			16,300		2,300	F
Total expense		108,350			111,700		3,350	F
Net operating income	$	13,950		$	7,300	$	7,150	F

Required:

Prepare the company's flexible budget performance report for November. Label each variance as favorable (F) or unfavorable (U). (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Answer 1

Answer-

BICKEL CORPORATION
FLEXIBLE BUDGET PERFORMANCE REPORT
For the month ended November 30
PARTICULARS	ACTUAL RESULTS	VARIANCES	REMARK	FLEXIBLE BUDGET	VARIANCES	REMARK	PLANNING BUDGET
	$	$		$	$		$
Customers served	36000			36000			35000
Revenue	122300	-100	Unfavorable	122400	3400	Favorable	119000
Less:-Expenses
Wages & Salaries	68500	0	None	68500	-1250	Unfavorable	67250
Supplies	20450	2950	Fvaorable	23400	-650	Unfavorable	22750
Insurance	5400	0	None	5400	0	None	5400
Miscellaneous expense	14000	2640	Fvaorable	16640	-340	Unfavorable	16300
Total Expenses	108350	5590	Fvaorable	113940	-2240	Unfavorable	111700
Net Opreating income	13950	-5490	Unfavorable	8460	-1160	Unfavorable	7300

Explanation-

BICKEL CORPORATION
Flexible Budget
For the month ended November 30
Particulars		Amount
		$
Revenue	36000 customers*$3.40 customers served	122400
Less:-Expenses
Wages & Salaries	$23500+(36000 customers*$1.25 customers served)	68500
Supplies	36000 customers*$0.65 customers served	23400
Insurance		5400
Miscellaneous expense	$4400+(36000 customers*$0.34 customers served)	16640
Total Expenses		113940
Net Opreating income		8460