Buddy Corporation is a service company that measures its output based on the number of customers ser

Buddy Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

Note: I need the ? marks mainly, additional information would be helpful if possible. Please put how you calculated each if you can, it would help me alot. Fixed Element
per Month Variable Element per Customer Served Actual Total
for May   Revenue $ 5,600      $ 182,000   Employee salaries and wages $ 55,000     $ 1,600      $ 110,300   Travel expenses $ 850      $ 27,200   Other expenses $ 34,000     $ 32,600

When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers.

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1.

What amount of revenue would be included in BuddyAc€?cs flexible budget for May?

Revenue:
Variable element per customer served: ?
Actual activity:                                             ?
Amount in flexible budget:

2.

What amount of employee salaries and wages would be included in BuddyAc€?cs flexible budget for May?

Employee salaries and wages
Variable element per customer served: ?
Actual Activity                                       ?
Variable portion of the amount
Fixed element per month                         ?
Amount in flexible budget

3.
What amount of travel expenses would be included in BuddyAc€?cs flexible budget for May?

Travel Expenses
Variable element per customer served   ?
Actual Activity                                               ?
Amount in flexible budget

4.

What amount of other expenses would be included in BuddyAc€?cs flexible budget for May?

Amount of other expenses?

5.

What net operating income would appear in BuddyAc€?cs flexible budget for May?
Net operating income

6.
What is BuddyAc€?cs revenue variance for May? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

Actual Results

Revenue Variance

Flexible Budget

         ?

             ?     | ?

            ?

7.
What is BuddyAc€?cs employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

Actual Results

Spending Variance

Flexible Budget

                ?                              ?   |    ?                                 ?                             

8.
What is BuddyAc€?cs travel expenses spending variance for May? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

Actual Results

Spending Variance

Flexible Budget

            ?                     

      ?         |          ?

          ?

9.
What is BuddyAc€?cs other expenses spending variance for May? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

Actual Results

Spending Variance

Flexible Budget

?                              ?     | ?                                  ?

10.

What amount of revenue would be included in BuddyAc€?cs planning budget for May?

Revenue:

Variable element per customer served                    ?               

Planned level of activity

?

Amount in planning budget

11.

What amount of employee salaries and wages would be included in BuddyAc€?cs planning budget
for May?

Employee salaries and wages:

Variable element per customer served

?

Planned activity

?

Variable portion of the amount

Fixed element per month

?

Amount in planning budget

12. What amount of travel expenses would be included in BuddyAc€?cs planning budget for May?

Travel expenses:

Variable element per customer served

?

Planned activity

?

Amount in planning budget

13.

What amount of other expenses would be included in BuddyAc€?cs planning budget for May?

  
Amount of other expenses   ?

14. What activity variance would Buddy report in May with respect to its revenue? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

Flexible Budget

Activity Variance

Planning Budget

                ?                               ? | ?                           ?

15. What activity variances would Buddy report with respect to each of its expenses? (Indicate the effect of each variance by selecting “F” for favorable, “U” for unfavorable, and “None” for no effect (i.e., zero variance). Input all amounts as positive values.)

Flexible Budget

Activity Variance

Planning Budget

Employee salaries and wages ?

?

?   |   ?

?

Travel expenses

?

?   |   ?

?

Other expenses

?

?   |   ?

?

 

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