Cicchetti Corporation uses customers served as its measure of activity. The foll
ID: 2600479 • Letter: C
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