Dreaming Corporation is a service company that measures its output based on the number of...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Dreaming 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 November as shown below:
Fixed Element Variable Element Actual Total
per month Per customer served for November
Revenue $15,000 $760,500
Employee salaries $150,000 $3,300 $464,000
And wages
Travel expenses $1800 $173,000
Other expenses $108,000 $103,500
When preparing its planning budget the company estimated that it would serve 90 customers per month; however, during November the company actually served 95 customers.
Required:
What amount of travel expenses would be included in Dreamings flexible budget for November?
What is Dreamings travel expenses spending variance for November?
What amount of travel expenses would be included in Dreamings planning budget for November?
What activity variances would Dreaming report with respect to travel expenses?
Please provide stewp by step instructions
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
