During April, Cheatam Corporation Budgeted for 27,000 Customers, but Actually

Essay

During April, Cheatam Corporation budgeted for 27,000 customers, but actually served 23,000 customers. The company uses the following revenue and cost formulas in its budgeting, where q is the number of customers served:
Revenue: $4.10q
Wages and salaries: $33,300 + $1.10q
Supplies: $0.70q
Insurance: $8,600
Miscellaneous expense: $3,700 + $0.40q
Required:
Prepare the company's flexible budget for April based on the actual level of activity for the month.