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Arrasmith Corporation uses customers served as its measure of activity. During February, the company budgeted for 36,000 customers, but actually served 28,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.50q
Wages and salaries: $34,200 + $1.40q
Supplies: $0.80q
Insurance: $11,400
Miscellaneous expenses: $7,400 + $0.40q
The company reported the following actual results for February:
Revenue $139,800
Wages and salaries $69,000
Supplies $15,400
Insurance $11,400
Miscellaneous expense $22,700
Required:
Prepare the company's flexible budget performance report for February.
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Arrasmith Corporation uses customers served as its measure of activity. During February, the company...
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