Solved: Gearhart corp bases its budget on the activity measure, Accounting Basics

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Gearhart corp bases its budget on the activity measure

Question - Gearhart Corp bases its budget on the activity measure customers served. During September the company planned to serve 25000 customers, but actually served 29000 customers.

Fixed element per month variable element per customer

Revenue - $3.10

Wages & salaries $23700 $0.80

Supplies 0 $0.60

Insurance $5300 0

Miscellaneous expense $3200 $0.20

Required - Prepare the company's flexible budget for September?

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Accounting Basics: Gearhart corp bases its budget on the activity measure

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Accounting Basics: Gearhart corp bases its budget on the activity measure

Reference No:- TGS02507008

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