1.Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $3,900 per month plus $409 per press run plus $959 per book set-up. The company expected its activity in July to be 215 press runs and 122 book set-ups, but the actual activity was 212 press runs and 121 book set-ups. The actual cost for wages and salaries in July was $206,980. The spending variance for wages and salaries in July would be closest to:

Adger 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 May as shown below:

	Fixed Element per Month	Variable Element per Customer Served	Actual Total for May
Revenue		$ 5,500	$ 204,000
Employee salaries and wages	$ 59,000	$ 2,000	$ 137,900
Travel expenses		$ 510	$ 17,500
Other expenses	$ 38,000		$ 36,200

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

Required:

1. What amount of revenue would be included in Adgers flexible budget for May?

Adger 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 May as shown below:

	Fixed Element per Month	Variable Element per Customer Served	Actual Total for May
Revenue		$ 5,500	$ 204,000
Employee salaries and wages	$ 59,000	$ 2,000	$ 137,900
Travel expenses		$ 510	$ 17,500
Other expenses	$ 38,000		$ 36,200

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

2. What amount of employee salaries and wages would be included in Adgers flexible budget for May?