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Chapter 9 Foundational 0 Saved Help Save & Exit Submit 1 Required information [The fol/owing information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The farm OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61,000 $ 2,200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40,000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Chapter 9 Foundational 0 Saved Help Save 8. Exit Submit 2 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The :3" 2 OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? Chapter 9 Foundational 0 Saved Help Save 8. Exit Submit ; Required information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The :3" 3 OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 3, What amount of travel expenses would be included in Adger's flexible budget for May? Chapter 9 Foundational 0 Saved Help Save 3. Exit Submit 4 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The 2"\" OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 4. What amount of other expenses would be included in Adger's flexible budget for May? Chapter 9 Foundational 0 Saved Help Save 3. Exit Submit 3 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pl' 5 OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 5. What net operating income would appear in Adger's flexible budget for May? Chapter 9 Foundational 0 Saved Help Save 3. Exit Submit 6 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pi\" OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61,000 $ 2,200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40,000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 6. What is Adger's revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) _::| Chapter 9 Foundational 0 Saved Help Save & Exit Submit ; Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pan7f15 company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 7. What is Adger's employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) _:l:| Chapter 9 Foundational 0 Saved Help Save & Exit Submit 8 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pan 8 OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) _::l Chapter 9 Foundational 0 Saved Help Save & Exit Submit 9 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pang OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 9. What is Adger's other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable. and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) I: Chapter 9 Foundational 0 Saved Help Save 8. Exit Submit 1 0 Required information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The Pa" 10 \"15 company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 10. What amount of revenue would be included in Adger's planning budget for May? Chapter 9 Foundational 0 Saved Help Save 8. Exit Submit 1 1 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Fan 11 OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 11. What amount of employee salaries and wages would be included in Adger's planning budget for May? Chapter 9 Foundational 0 Saved Help Save 8. Exit Submit 1 2 Required information [The following information applies to the questions displayed below] Adger Corporation is a service company that measures its output based on the number of customers served. The Pa" 12 OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 12. What amount of travel expenses would be included in Adger's planning budget for May? Chapter 9 Foundational 0 Saved Help Save 3. Exit Submit 1 3 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pa" 13 f15 company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 13. What amount of other expenses would be included in Adger's planning budget for May? Chapter 9 Foundational 0 Saved Help Save 3. Exit Submit 1 4 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Pan M OHS company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40, 000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 14. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) _:l:| Chapter 9 Foundational 0 Saved Help Save 8. Exit Submit 1 5 Required information [The following information applies to the questions displayed below. ] Adger Corporation is a service company that measures its output based on the number of customers served. The Part15 \"15 company provided the following xed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: 10 Variable Element points Fixed Element per Customer Actual Total for per Month Served May Revenue $ 5,400 $ 226,000 Employee salaries and wages $ 61, 000 $ 2, 200 $ 158,700 eBOOk Travel expenses $ 530 $ 20,700 Other expenses $ 40,000 $ 38,000 References When preparing its planning budget the company estimated that it would serve 40 customers per month; however, during May the company actually served 45 customers. 15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U\" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Employee salaries and wages Travel expenses Other expenses Chapter 9 0 Saved Help Save& Exit Submit Vulcan Flyovers offers scenic overflights of Mount Saint Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company's operations in July appear below: Vulcan Flyovers Operating Data For the Month Ended July 31 10 Actual Flexible Planning points Results Budget Budget Flights (q) 55 55 53 Revenue ($360.00q) $ 16,300 $ 19,800 $ 19,080 Expenses: 93\" Wages and salaries ($3,500 + $88.00q) 8,304 8,340 8,164 . Fuel ($30.00q) 1,820 1,650 1,590 Hint Airport fees ($840 + $31.00q) 2,405 2,545 2,483 Aircraft depreciation ($9.00q) 495 495 477 References Office expenses ($220 + $1.00q) 443 275273 Total expense 13,467 13,305 12,987 Net operating income $ 2,833 $ 6,495 $ 6,093 The company measures its activity in terms of ights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount. Chapter 9 0 Saved Help Save & Exit Submit overight at a discount. Required 1 1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 10 points eBook Hint'. Flights Revenue References Expenses: Wages and salaries Fuel Airport fees Aircraft depreciation Ofce expenses Total expense Net operating income Chapter 9 Saved Help Save & Exit Submit 2 AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Variable Actual Component Component Total for per Month per Job February 10 Revenue $ 279 $ 30, 730 points Technician wages $ 8, 100 $ 7,950 Mobile lab operating expenses $ 4,900 $ 33 8, 700 Office expenses $ 2,600 $ 3 2, 810 AtA - Advertising expenses 1, 560 1, 630 eBook Insurance $ 2,850 2, 850 Miscellaneous expenses $ 950 $ 1 $ 375 References The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $8,700. The company expected to work 120 jobs in February, but actually worked 124 jobs.Chapter 9 0 Saved Help Save& em Submit Required: Prepare a flexible budget performance report showing AirQual Test Corporation's revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) 10 points eBook References Jobs Revenue Expenses: Technician wages Mobile lab operating expenses Ofce expenses Advertising expenses Insurance Miscellaneous expenses Total expense Net operating income Chapter 9 o 10 points eBook Hint References Saved Help You havejust been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device; The president has asked that you review the company's costing system and \"do what you can to help us get better control of our manufacturing overhead costs.\" You nd that the company has never used a exible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control. After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March: Actual Cost Cost Formula in March Utilities $16,700 + $0.11 per machinehour $ 20,700 Maintenance $38,200 + $1.30 per machinehour $ 58,000 Supplies $0.30 per machinehour $ 5,800 Indirect labor $94,500 + $1.50 per machinehour $ 125,400 Depreciation $68,200 $ 69,900 During March, the company worked 18,000 machine-hours and produced 12,000 units. The company had originally planned to work 20,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. Save 8. Exit Submit Chapter 9 0 Saved Help Save& Exit Submit 20,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. 10 Complete this question by entering your answers in the tabs below. points Required 1 Required 2 eBook Hint Calculate the activity variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) References Maintenance Supplies Indirect labor Depreciation Required 2 > Chapter 9 0 Saved Help Save& Exit Submit 20,000 machine-hours during March. Required: 1. Calculate the activity variances for March. 2. Calculate the spending variances for March. 10 Complete this question by entering your answers in the tabs below. points Required 1 Required 2 eBook Hint Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) References Utilities Maintenance Supplies Indirect labor Depreciation