During May, Hiles Corporation budgeted for 45,000 customers, but actually served

Question

During May, Hiles Corporation budgeted for 45,000 customers, but actually served 43,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served: Revenue: $4.58q Wages and salaries: $37,000+ $1.91q Supplies: $0.81q nsurance: $14,000 Miscellaneous: $7,000+ $0.31q Required Complete the company's flexible budget for May based on the actual level of activity for the month. (Input all amounts as positive values. Omit the "$" sign in your response.) Hiles Corporation For the Month Ended May 31 Actual customers served Revenue Expenses: Wages and salaries Supplies Insuran Miscellaneous Total expense Net operating income 1H

Explanation / Answer

Answer:-

Hiles Corporation Flexible Budget For the month of Ended May 31 Particulars Amount $ Revenue (a) 43000 customers*$4.58 per customer 196940 Variable expenses:- Wages & Salaries $1.91 per customer served*43000 customers 82130 Supplies $.81 per customer served*43000 customers 34830 Miscellenous $.31 per customer served*43000 customers 13330 Total variable costs (b) 130290 Fixed Expenses Wages & Salaries 37000 Insurance 14000 Miscellenous 7000 Total fixed costs (c) 58000 Net Opreating income d=a-(b+c) 8650

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