Question
In: Accounting
Bellamy Corporation uses customers served as its measure of activity. The company bases its budgets on...
Bellamy Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $3.20 per customer served. Wages and salaries should be $21,000 per month plus $0.80 per customer served. Supplies should be $0.70 per customer served. Insurance should be $5,300 per month. Miscellaneous expenses should be $3,100 per month plus $0.10 per customer served.
The company reported the following actual results for October:
Customers served 22,000
Revenue $ 73,300
Wages and salaries $ 40,400
Supplies $ 16,100
Insurance $ 5,500
Miscellaneous expense $ 7,400
Required:
Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U).
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Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for...
Crovo Corporation uses customers served as its measure of
activity. During December, the company budgeted for 42,000
customers, but actually served 44,000 customers. The company has
provided the following data concerning the formulas used in its
budgeting and its actual results for December:
Data used in budgeting:
Fixed element
per month
Variable element
per customer
Revenue
$
2.60
Wages and salaries
$
20,300
$
0.89
Supplies
$
0
$
0.54
Insurance
$
7,300
$
0.00
Miscellaneous
$...
Manic Corporation uses customers served as its measure of activity. During June, the company budgeted for...
Manic Corporation uses customers served as its measure of
activity. During June, the company budgeted for 20,000 customers,
but actually served 19,000 customers. The company has provided the
following data concerning the formulas used in its budgeting and
its actual results for June:
Data used in budgeting:
fixed
Element
per month
Variable Element
per customer
revenue
$4.50
wages and Salaries
$23,900
$1.40
Supplies
0
$0.80
Insurance
$5,700
$0.00
Miscellaneous
$5,000
$0.40
Actual results for June:
Revenue
$85,400
wages and salaries...
Crovo Corporation uses customers served as its measure of activity. During December, the company budgeted for...
Crovo Corporation uses customers served as its measure of
activity. During December, the company budgeted for 39,000
customers, but actually served 41,000 customers. The company has
provided the following data concerning the formulas used in its
budgeting and its actual results for December:
Data used in budgeting:
Fixed element
per month
Variable element
per customer
Revenue
$
2.50
Wages and salaries
$
20,000
$
0.86
Supplies
$
0
$
0.51
Insurance
$
7,000
$
0.00
Miscellaneous
$...
Abel Corporation uses customers served as its measure of activity. During February, the company budgeted for...
Abel Corporation uses customers served as its measure of
activity. During February, the company budgeted for 36,400
customers, but actually served 27,600 customers. The company uses
the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
Revenue: $4.90q
Wages and salaries: $34,600 + $1.52q
Supplies: $0.92q
Insurance: $11,800
Miscellaneous expenses: $7,800 + $0.44q
The company reported the following actual results for
February:
Revenue
$
147,800
Wages and salaries
$
69,400
Supplies
$
15,800...
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for...
Arrasmith Corporation uses customers served as its measure of
activity. During February, the company budgeted for 36,800
customers, but actually served 27,200 customers. The company uses
the following revenue and cost formulas in its budgeting, where q
is the number of customers served:
Revenue: $5.30q
Wages and salaries: $35,000 + $1.64q
Supplies: $1.04q
Insurance: $12,200
Miscellaneous expenses: $8,200 + $0.48q
The company reported the following actual results for
February:
Revenue
$
155,800
Wages and salaries
$
69,800
Supplies
$
16,200...
Bickel Corporation uses customers served as its measure of activity. The following report compares the planning...
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...
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning...
Cicchetti 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 December:
Cicchetti Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended December 31
Actual
Results
Planning Budget
Variances
Customers served
29,000
28,000
Revenue (3.40q)
$
98,800
$
95,200
$
3,600
F
Expenses:
Wages and salaries ($22,800 +
$1.18q)
57,020
55,840
1,180
U
Supplies ($0.58q)
14,540
16,240
1,700
F
Insurance ($4,700)
4,700...
Rundell Corporation uses customers served as its measure of activity. The following report compares the planning...
Rundell 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 July. Wages and
Supplies are purely variable costs while Insurance is all fixed
cost. Miscellaneous expense is a mixed cost with $2,500 being the
fixed component of the total amount planned.
Rundell Corporation
Comparison of Actual Results to Planning
Budget
For the Month Ended July 31
Actual Results
Planning Budget
Customers Served
4,260
5,000...
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning...
Cicchetti 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 December:
Cicchetti Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended December 31
Actual
Results
Planning Budget
Variances
Customers
served
38,000
37,000
Revenue (3.50q)
$
133,800
$
129,500
$
4,300
F
Expenses:
Wages and salaries ($23,700 +
$1.27q)
71,960
70,690
1,270
U
Supplies ($0.67q)
22,290
24,790
2,500
F
Insurance ($5,600)
5,600...
Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning...
Cicchetti 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 December:
Cicchetti
Corporation
Comparison of Actual Results to Planning Budget
For the Month Ended December 31
Actual
Results
Planning
Budget
Variances
Customers served
38,000
34,000
Revenue ($4.6q)
$
175,100
$
156,400
$
18,700
F
Expenses:
Wages and salaries
($36,100 + $1.4q)
91,400
83,700
7,700
U
Supplies ($0.7q)
26,000
23,800
2,200
U
Insurance
($13,100)
13,400...
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