Answer Happy

5 2012023 Tranquil Holidays Corporation provides vacation planning services to clients, and they measure their activity based on the number of clients served. During 2021, Tranquil Holidays had budgeted that they would serve 37,000 clients, but actually planned vacations for 27.000 clients. In their budgeting activities, Tranquil has determined that the following revenue and cost formulas are appropriate, where x represents the number of clients served: Revenue: $5.50x Wages and salaries: $35,200+ $1.70x Supplies: $1.10x Insurance: $12,400 Miscellaneous expenses: $8,400+ $0.50x Tranquil Holidays Corporation reported the following actual results for 2021 Revenue Kages and salaries $ 159,000 $70,000 $ 16,400 $12,400 Bupplies Insurance Miscellaneous expense $ 27,700 Required: Prepare Tranquil Holiday Corporations's flexible budget performance report for 2021. Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there was no variance. Record all amounts and variances as positive values.) Clients served Revenue Expenses: Wages and salaries Supplies Flexible Budget Performance Report For the Month Ended February 28 Actual Results 27,000 Revenue and Spending Flexible Variances Budget 27,000 Activity Variances Planning Budget 37,000

5 3012 Tranquil mays Corporation reported the runwing actuar resurs for ZUZE Revenue Wages and salaries Supplies Insurance Miscellaneous expense Clients served Revenue Expenses: Required: Prepare Tranquil Holiday Corporations's flexible budget performance report for 2021. Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there was no variance. Record all amounts and variances as positive values.) Wages and salaries Supplies Insurance Miscellaneous expense $ 159,800 $ 70,000 Total expense Net operating income $ 16,400 $ 12,400 $ 27,700 Flexible Budget Performance Report For the Month Ended February 28 Actual Revenue and Spending Flexible Budget Results Variances 27,000 27,000 Activity Variances Planning Budget 37,000