Pargo Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 29,000 customers, but actually served 30,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.

Question

Pargo Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 29,000 customers, but actually served 30,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
  Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.

Quizplus · Accepted Answer

The Answer of Pargo Corporation bases its budgets on the activity measure customers served. During May, the company planned to serve 29,000 customers, but actually served 30,000 customers. The company has provided the following data concerning the formulas it uses in its budgeting:
  Required:
Prepare the company's flexible budget for May based on the actual level of activity for the month.

Pargo Corporation Bases Its Budgets on the Activity Measure Customers