Tranquil Holidays Corporation Provides Vacation Planning Services To Clients And They Measure Their Activity Based On T 1 (25.56 KiB) Viewed 10 times
Tranquil Holidays Corporation Provides Vacation Planning Services To Clients And They Measure Their Activity Based On T 2 (31.52 KiB) Viewed 10 times
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 36,900 clients, but actually planned vacations for 27,100 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: $5.40x Wages and salaries. $35,100 + $1.67x Supplies: $1.07x Insurance: $12,300 Miscellaneous expenses: $8,300 + $0.49x Tranquil Holidays Corporation reported the following actual results for 2021. Revenue Wages and salaries Supplies Insurance Miscellaneous expense $ 157,800, $ 69,900 $ 16,300 $ 12,300 $ 27,200 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 Insurance Miscellaneous expense Total expense Net operating income Flexible Budget Performance Report For the Month Ended February 28 Actual Results 27,100 Revenue and Spending Flexible Variances Budget 27,100 Activity Variances Planning Budget 36,900
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!