Cicchetti Corporation uses customers served as its measure of activity. The foll

Question

Cicchetti Corporation uses customers served as its measure of activity. The following report compares the planning budget to the actual operating results for the month of December: Cicchetti Corporation Comparison of Actual Results to Planning Budget For the Month Ended December 31 Actual Planning Results Budget Variances Customers served Revenue (3.40g) 29,000 28,000 $ 98,800 $ 95,200 $ 3,600 F Expenses Wages and salaries ($22,800+$1.18q)57,020 55,840 1,180 U Supplies ($0.58q) Insurance ($4,700) Miscellaneous expense ($3,700 .38q) 12,640 14,340 1,700F 14,540 16,240 1,700 F 4,700 4,700 Total expense 88,900 91,120 2,220 F Net operating income $ 9,900 4,080 $ 5,820F

Explanation / Answer

Revenue and spending variances :

Actual results revenue and spending variance Flexible budget customer served 29000 29000 revenue 98800 200 F 98600 Expenses Wages and salaries 57020 None 57020 supplies 14540 2280 F 16820 insurance 4700 None 4700 miscellaneous expenses 12640 2080 F 14720 Total expenses 88900 4360 F 93260 Net operating income 9900 4560 F 5340

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