Tranquil Holidays Corporation Provides Vacation Planning Services To Clients And They Measure Their Activity Based On T 1 (29.85 KiB) Viewed 11 times
Tranquil Holidays Corporation Provides Vacation Planning Services To Clients And They Measure Their Activity Based On T 2 (32.12 KiB) Viewed 11 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 35,400 clients, but actually planned vacations for 31,600 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: $3.90x Wages and salaries: $33,600+ $1.22x Supplies: $0.62x Insurance: $10,800 Miscellaneous expenses: $6,800 + $0.34x Tranquil Holidays Corporation reported the following actual results for 2021: Revenue Mages and salaries. Supplies Insurance Miscellaneous expense $ 127,800 $ 68,400 $ 14,800 $ 10,800 $ 19,700 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.)
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 Revenue and Spending Results Variances 31,600 Flexible Budget 31,600 Activity Variances Planning Budget 35,400
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