During September, Booker Corporation budgeted for 20,000 customers, but actually served 22,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $5.50q
Wages and salaries: $28,300 + $1.70q
Supplies: $1.00q
Insurance: $6,300
Miscellaneous: $5,400 + $0.40q
Required:
Prepare the company's flexible budget for September based on the actual level of activity for the month.
Correct Answer:
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