During May,Hiles Corporation budgeted for 31,000 customers,but actually served 29,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:

Revenue: $4.40q
Wages and salaries: $35,800 + $1.70q
Supplies: $0.60q
Insurance: $12,300
Miscellaneous: $5,500 + $0.10q

Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.

Question

During May,Hiles Corporation budgeted for 31,000 customers,but actually served 29,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:

Revenue: $4.40q
Wages and salaries: $35,800 + $1.70q 
Supplies: $0.60q
Insurance: $12,300
Miscellaneous: $5,500 + $0.10q

Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.

Quizplus · Accepted Answer

The Answer of During May,Hiles Corporation budgeted for 31,000 customers,but actually served 29,000 customers.The company uses the following revenue and cost formulas in its budgeting,where q is the number of customers served:

Revenue: $4.40q
Wages and salaries: $35,800 + $1.70q 
Supplies: $0.60q
Insurance: $12,300
Miscellaneous: $5,500 + $0.10q

Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.

During May,Hiles Corporation Budgeted for 31,000 Customers,but Actually Served 29,000