Ensley Corporation uses customers served as its measure of activity. The following report compares the planning budget t
Posted: Thu May 05, 2022 5:23 am
Ensley Corporation uses customers
served as its measure of activity. The following report compares
the planning budget to the actual operating results for
November:
Ensley Corporation
Comparison of Actual Results to
Planning Budget
For the Month Ended November 30
Actual Results
Planning Budget
Variances
Customers served
24,000
25,000
Revenue ($3.60q)
$
85,700
$
90,000
$
4,300
U
Expenses:
Wages and salaries ($22,200 +
$1.20q)
48,900
52,200
3,300
F
Supplies ($0.50q)
13,000
12,500
500
U
Insurance ($5,700)
5,600
5,700
100
F
Miscellaneous expense ($4,500 +
$0.40q)
11,900
14,500
2,600
F
Total expense
79,400
84,900
5,500
F
Net operating income
$
6,300
$
5,100
$
1,200
F
Required:
Prepare the company's flexible budget
performance report for November. Label each variance as favorable
(F) or unfavorable (U).
served as its measure of activity. The following report compares
the planning budget to the actual operating results for
November:
Ensley Corporation
Comparison of Actual Results to
Planning Budget
For the Month Ended November 30
Actual Results
Planning Budget
Variances
Customers served
24,000
25,000
Revenue ($3.60q)
$
85,700
$
90,000
$
4,300
U
Expenses:
Wages and salaries ($22,200 +
$1.20q)
48,900
52,200
3,300
F
Supplies ($0.50q)
13,000
12,500
500
U
Insurance ($5,700)
5,600
5,700
100
F
Miscellaneous expense ($4,500 +
$0.40q)
11,900
14,500
2,600
F
Total expense
79,400
84,900
5,500
F
Net operating income
$
6,300
$
5,100
$
1,200
F
Required:
Prepare the company's flexible budget
performance report for November. Label each variance as favorable
(F) or unfavorable (U).