Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information:Revenue should be $4.20 per customer served. Wages and salaries should be $21,800 per month plus $1.00 per customer served.Supplies should be $0.70 per customer served. Insurance should be $5,700 per month, Miscellaneous expenses should be $3,900per month plus $0.30 per customer served.The company reported the following actual results for October:Customers servedRevenueWages and salariesSuppliesInsuranceMiscellaneous expenseRequired:22,500$ 137,300$ 40,600$ 16,300$ 5,580$ 7,480Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) orunfavorable (U).Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zerovariance). Input all amounts as positive values.Shaak CorporationRevenue and Spending VariancesFor the Month Ended October 31Customers servedRevenueExpenses:Wages and salariesSuppliesInsuranceMiscellaneous expenseTotal expenseActual Results22,500Flexible Budget22,500Revenue and SpendingVariances

Part 2: ExplanationStep 1: Calculate the actual revenue:Actual revenue = Customers served * Revenue…

Answered: Shaak Corporation uses customers served…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Shaak Corporation uses customers served as its measure of activity. The company bases its budgets on the following information: Revenue should be $6.30 per customer served. Wages and salaries should be $22,300 per month plus $0.90 per customer served. Supplies should be $0.80 per customer served. Insurance should be $5,950 per month. Miscellaneous expenses should be $4,400 per month plus $0.20 per customer served. The company reported the following actual results for October: Customers served Revenue. Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare a report showing the company's revenue and spending variances for October. Label each variance as favorable (F) or unfavorable (U). Note: 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. Customers served Revenue Expenses: Wages and salaries Supplies Insurance 22,750 $ 177,300 $ 40,725 $…
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: Customers served Revenue ($3.60g) Expenses: Wages and salaries ($25,600+ $1.20g) Supplies ($0.50g) Insurance ($ 7,400) Miscellaneous expense ($6,200 + $0.40g) Total expense Net operating income. Customers served Revenue Expenses: Bickel Corporation Comparison of Actual Results to Planning Budget For the Month Ended November 30 Wages and salaries Supplies Insurance Miscellaneous expense Total expense 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.) Bickel Corporation Flexible Budget Performance Report For the Month Ended November 30 Actual Results…
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 Customers served Revenue ($3.504) Expenses: Mages and salaries ($24,200 $1.324) Supplies ($0.729) Insurance ($6,100) Miscellaneous expense (55,100 50.410) Total expense Net operating income Actual Results 43,000 $150,300 80,960 28,840 6,100 20,920 136,820 $ 11,400 Planning Budget 42,000 $147,000 79,640 30,240 6,100 22,320 138,300 $1,700 Variances $3,300 F 1,320 U 1,400 F 0 None 1,400 F 1,480 F $4,780 F Required: Prepare the company's Comprehensive 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.)
Laizure Clinic uses patient-visits as its measure of activity. The clinic bases its budgets on the following information: Revenue should be $62.90 per patient-visit. Personnel expenses should be $36,400 per month plus $16.50 per patient-visit. Medical supplies should be $2,700 per month plus $11.90 per patient-visit. Occupancy expenses should be $9,100 per month plus $5.50 per patient-visit. Administrative expenses should be $4,600 per month plus $3.60 per patient-visit. The clinic reported the following actual results for November: Patient-visits Revenue Personnel expenses Medical supplies Occupancy expenses Administrative expenses Required: 2,870 $ 199,240 $ 89,320 $ 40,240 $ 19,350 $ 9,750 Prepare a report showing the clinic's revenue and spending variances 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…
A company bases its budgets on the activity measure customers served. During September, the company planned to serve 38,000 customers, but actually served 33,000 customers. Revenue is $3.96 per customer served. Wages and salaries are $35,700 per month plus $1.36 per customer served. Supplies are $0.66 per customer served. Insurance is $9,900 per month. Miscellaneous expenses are $8,000 per month plus $0.36 per customer served. Required: Prepare a report showing the company's static budget variance for September. Indicate in each case whether the variance is 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 and enter any losses with a minus sign.) Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous expense Total expense Net operating income (loss) Varcoe Corporation Static Budget Variance For…
Felicetti Corporation bases its budgets on the activity measure customers served. During November, the company planned to serve 21,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting: Fixed element per month Variable element per customer $0 $6.90 $ 37,700 $0 Revenue Wages and salaries Supplies Insurance $2.70 $1.10 $9,900 $0.00 Miscellaneous expense $ 6,600 $0.20 The company has also furnished its income statement for November Felicetti Corporation Income Statement For the Month Ended November 30 Actual customers served 26,000 Revenue $177,900 Expenses: Wages and salaries Supplies Insurance 108,900 26,900 11,900 Miscellaneous expense 14,200 161,900 $ 16,000 Total expense Net operating income Required: Prepare a report showing the company's activity variances for November. Indicate in each case whether the variance is favorable (F) or unfavorable (U).
Hi, can explain to me step by step? TQ Squillace Corporation uses customers served as its measure of activity. During October, the company budgeted for 38,000 customers, but actually served 35,000 customers. The company has provided the following data concerning the formulas used in its budgeting and its actual results for October:
Dinham Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 3,600 tenant-days, but its actual level of activity was 3,630 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March: Data used in budgeting: 01:08:33 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for March: Variable Fixed element per month $ 0 element per tenant-day $34.50 $ 2,500 $ 7.50 1,500 14.00 8,000 3.00 6,500 0.60 $ 18,500 $ 25.10 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses $ 121,234 $ 28,550 $ 53,125 $ 18,250 $ 7,095 The spending variance for food and supplies in March would be closest to: Multiple Choice k
Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36.100 customers, but actually served 27.900 customers. The company uses the following revenue and cost formules in its budgeting, where is the number of customers served: Revenue: $4.60q Wages and salaries: $34,300+ $1.43q Supplies: $0.83q Insurance: $11,500 Miscellaneous expenses: $7,500 + $0.41q The company reported the following actual results for February: $ 141,800 $ 69,100 $ 15,500 $ 11,500 $ 23,200 Revenue Wages and salaries Supplies Insurance Miscellaneous expense Required: Prepare the company's flexible budget performance report for February. Label each variance as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Customers served Revenue Expenses: Wages and salaries Supplies Insurance Miscellaneous…
Kent Sdn Bhd needs to come up with a cash budget to make sure that there is sufficient cash within the company to achieve the operations in the company. Following are the information gathered from Kent Sdn Bhd: The sales figures for the month are January RM 300,000, February RM 400,000 and March RM 550,000. 1) From the sales figure, only 10 percent of the customers agreed to pay immediately. Of the remaining customers, 60 percent agreed to pay one month after sales and the balance of 40 percent agreed to pay 2 months after-sales. 2) 3) Based on the industry experience, it is known that credit sales customers of 2 percent tend not to pay due to various reasons. These are referred to as bad debts. Kent Sdn Bhd had decided to reduce the budgeted cash inflow by this percentage only with the customers who are paying 2 months after-sales. 4) The company incurs labour cost to 20 percent, material cost to 25 percent and overhead cost to 15 percent. All this cost percentage is based on sales…
Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available. 1. Sales: 20,300 units quarter 1; 22,000 units quarter 2. 2. Variable costs per dollar of sales: sales commissions 5%, delivery expense 2%, and advertising 3%. 3. Fixed costs per quarter: sales salaries $10,200, office salaries $6,160, depreciation $4,730, insurance $1,660, utilities $890, and repairs expense $610. 4. Unit selling price: $22. Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.) KIRKLAND COMPANY Selling and Administrative Expense Budget Quarter 1 2 Six Months
Paulis Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During February, the kennel budgeted for 5,200 tenant-days, but its actual level of activity was 5,220 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for February: Data used in budgeting: 20 Revenue Wages and salaries Food and supplies Facility expenses Administrative expenses Total expenses Actual results for February: Revenue Wages and salaries Fixed element per month $ 0 Variable element per tenant-day $ 31.70 $ 4,200 $ 7.70 800 12.50 8,500 4.70 7,600 0.50 $ 21,200 $ 25.40 $ 108,980 Food and supplies Facility expenses Administrative expenses $ 23,620 $ 36,802 $ 19,370 $ 9,164 The overall revenue and spending variance (i.e., the variance for net operating income in the revenue and spending variance column on the flexible budget performance report) for February would be closest…

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