A shipping cоntаiner refurbishment cоmpаny meаsures its оutput by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October. Fixed Element per MonthVariable Element per Container RefurbishedActual Total for OctoberRevenue $ 4,100$ 158,600Employee salaries and wages$ 50,600$ 1,100$ 92,700Refurbishing materials $ 700$ 27,000Other expenses$ 41,200 $ 40,800When the company prepared its planning budget at the beginning of October, it assumed that 40 containers would have been refurbished. However, 38 containers were actually refurbished.The revenue variance in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget would have been closest to:
A cоmpаny uses custоmers served аs its meаsure оf activity.The following Flexible Budget Performance Report compares the planning budget to the actual operating results for the month of December but it isn't complete. Add the flexible budget and compute the revenue and spending variances and then the quantity variances for the month.Actual Results COL ACOL B COL CPlanning BudgetCustomers served28,00029,000Revenue ($3.40q)$ 94,700$ 98,600Wages and salaries ($23,100 + $1.21q)$ 58,000$ 58,190Miscellaneous expense ($9,000 + $0.91q)$ 34,100$ 35,390Net operating income$ 2,600$ 5,020Required:Label 3 lines in the answer area COL A, COL B, COL C. Put the proper label to start the column entries and then the numbers you would place in the boxes under that label.(Numbers for variances will receive no credit without indicating whether they are favorable or unfavorable)a. Prepare the company's flexible budget for the month in the proper column of the performance report. (5 pts)b. Fill in the dollar amount of the revenue and spending variances and label each of the variances from revenue through net operating income properly as either favorable (F) or unfavorable (U). (3)c. Fill in the dollar amount of the activity variances and label each of the variances from revenue through net operating income properly as either favorable (F) or unfavorable (U). (3)d. Label both variance columns. (2)