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 ActualPlanning ResultsBudget Variances 30,500 Customers served Revenue ($5.0q) Expenses: 36,000 S180,900 $152,500 $28,400 F Wages and salaries (S37,300$1.8q) Supplies (S0.8q) Insurance ($14,300) Miscellaneous expense ($7,300 $0.3q) 105,400 28,300 14,650 19,950 168,300 92,200 24,400 14,300 16,450 147,350 5,150 13,200 U 3,900 U 350 U 3.500 U 20,950 U 7,450 F Total expense Net operating income Required Prepare the company's flexible budget performance report for December. Select each variance as favorable (F), unfavorable (U) or "None"

Explanation / Answer

Flexible Budget performance Actual Flexible Variance results budget Customers served 36,000 36,000 Revenue 180,900 180000 900 F expenses wages & salaries 105,400 102100 3,300 U supplies 28,300 28800 500 F insurance 14,650 14,300 350 U Miscellaneous expense 19,950 18100 1,850 U total expense 168,300 163300 5,000 U net operating income 12,600 16700 4,100 U

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