Flexible budget cost actual cost the difference is a

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Flexible budget cost Actual cost The difference is a spending variance.
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9-15 Revenue and Spending Variances Revenue and Revenue/Cost Flexible Actual Spending Formulas Budget Results Variances Number of lawns (Q) 550 550 Revenue ($75Q) 41,250 $ 43,000 $ 1,750 $ F Expenses: Wages and salaries ($5,000 + $30Q) 21,500 $ 23,500 $ 2,000 $ U Gasoline and supplies ($9Q) 4,950 5,100 150 U Equipment maintenance ($3Q) 1,650 1,300 350 F Office and shop utilities ($1,000) 1,000 950 50 F Office and shop rent ($2,000) 2,000 2,000 - Equipment Depreciation ($2,500) 2,500 2,500 - Insurance ($1,000) 1,000 1,200 200 U Total expenses 34,600 36,550 1,950 U Net operating income 6,650 $ 6,450 $ 200 $ U Larry's Lawn Service For the Month Ended June 30 Larry’s Flexible Budget Compared with the Actual Results $1,750 favorable revenue variance
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9-16 Revenue and Revenue/Cost Flexible Actual Spending Formulas Budget Results Variances Number of lawns (Q) 550 550 Revenue ($75Q) 41,250 $ 43,000 $ 1,750 $ F Expenses: Wages and salaries ($5,000 + $30Q) 21,500 $ 23,500 $ 2,000 $ U Gasoline and supplies ($9Q) 4,950 5,100 150 U Equipment maintenance ($3Q) 1,650 1,300 350 F Office and shop utilities ($1,000) 1,000 950 50 F Office and shop rent ($2,000) 2,000 2,000 - Equipment Depreciation ($2,500) 2,500 2,500 - Insurance ($1,000) 1,000 1,200 200 U Total expenses 34,600 36,550 1,950 U Net operating income 6,650 $ 6,450 $ 200 $ U Larry's Lawn Service For the Month Ended June 30 Larry’s Flexible Budget Compared with the Actual Results Revenue and Spending Variances Spending  variances
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9-17 Now, let’s use              budgeting concepts to combine the revenue and  spending variances reports for Larry’s  Lawn Service.        A Performance Report Combining Activity  and Revenue and Spending Variances
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9-18 Revenue and Revenue/Cost Planning Activity Flexible Spending Actual Formulas Budget Variances Budget Variances Results Number of lawns (Q) 500 550 550 Revenue ($75Q) 37,500 $ 3,750 $ F 41,250 $ 1,750 $ F 43,000 $ Expenses: Wages and salaries ($5,000 + $30Q) 20,000 $ 1,500 $ U 21,500 $ 2,000 $ U 23,500 $ Gasoline and supplies ($9Q) 4,500 450 U 4,950 150 U 5,100 Equipment maintenance ($3Q) 1,500 150 U 1,650 350 F 1,300 Office and shop utilities ($1,000) 1,000 - 1,000 50 F 950 Office and shop rent ($2,000) 2,000 - 2,000 - 2,000 Equipment Depreciation ($2,500) 2,500 - 2,500 - 2,500 Insurance ($1,000) 1,000 - 1,000 200 U 1,200 Total expenses 32,500 2,100 U 34,600 1,950 U 36,550 Net operating income 5,000 $ 1,650 $ F 6,650 $ 200 $ U 6,450 $ Larry's Lawn Service For the Month Ended June 30 Flexible Budget Performance Report A Performance Report Combining Activity  and Revenue and Spending Variances
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9-19 A Performance Report Combining Activity  and Revenue and Spending Variances Revenue and Revenue/Cost Planning Activity Flexible Spending Actual Formulas Budget Variances Budget Variances Results Number of lawns (Q) 500 550 550 Revenue ($75Q) 37,500 $ 3,750 $ F 41,250 $ 1,750 $ F 43,000 $ Expenses: Wages and salaries ($5,000 + $30Q) 20,000 $ 1,500 $ U 21,500 $ 2,000 $ U 23,500 $ Gasoline and supplies ($9Q) 4,500 450 U 4,950 150 U 5,100 Equipment maintenance ($3Q) 1,500 150 U 1,650 350 F 1,300 Office and shop utilities ($1,000) 1,000 - 1,000 50 F 950 Office and shop rent ($2,000) 2,000 - 2,000 - 2,000 Equipment Depreciation ($2,500) 2,500 - 2,500 - 2,500 Insurance ($1,000) 1,000 - 1,000 200 U 1,200 Total expenses 32,500 2,100 U 34,600 1,950 U 36,550 Net operating income 5,000 $ 1,650 $ F 6,650 $ 200 $ U 6,450 $ Larry's Lawn Service For the Month Ended June 30 Flexible Budget Performance Report 50 lawns × $75 per lawn 50 lawns × $30 per lawn
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9-20 Revenue and Revenue/Cost Planning Activity Flexible Spending Actual Formulas Budget
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