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Dreaming Corporation is a service company that measures its output based on the number of...

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Accounting

Dreaming Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for November as shown below:

Fixed Element Variable Element Actual Total

per month Per customer served for November

Revenue $15,000 $480,000

Employee salaries $150,000 $3,300 $264,000

And wages

Travel expenses $1800 $57,000

Other expenses $108,000 $103,500

When preparing its planning budget the company estimated that it would serve 90 customers per month; however, during November the company actually served 95 customers.

Required:

What amount of employee salaries and wages would be included in Dreamings flexible budget for November?

What is Dreamings employee salaries and wages spending variance for November?

What amount of employee salaries and wages would be included in Dreamings planning budget for November?

What activity variances would Dreaming report with respect to salaries and wages?

Please provide step by step instructions

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