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1. Delta Air Lines, Inc. is a major airline in the United States. For budgeting...

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Accounting

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1. Delta Air Lines, Inc. is a major airline in the United States. For budgeting purposes, Delta measures its output by the number of customers served. The Delta Air Lines has provided the following cost estimates, both fixed and variable, to be uses for budgeting purposes. Fixed Element per Month Variable Element per Customer Served Revenue $738 Employee salaries and wages $ 125,000 $150 Travel expenses $700 Other expenses $ 31,900 When the Delta Air Lines prepared its planning budget at prior to the beginning of the year, it assumed that 26,000 customers would have been served in January. However, 25,000 customers were actually served during January and were charged $ 744 per customer. 1. What was the budgeted Revenue for Delta Air Lines? 19,188,000 2. What was the flexible budget revenue for Delta Air Lines? 18,450,000 3. What is the revenue variance? 4. What is the activity variance

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