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:

When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers.

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

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

3. What amount of travel expenses would be included in Adgers flexible budget for May?

4. What amount of other expenses would be included in Adgers flexible budget for May?

5. What net operating income would appear in Adgers flexible budget for May?

Variable Element per Element Customer Total per Month Served for May Fixed Actual $ 6,000 $195,500 Revenue Employee salaries and wages $ 56,000$ 1,700 $ 114,700 Travel expenses Other expenses $ 900 28,900 33,500 $35,000 Revenue: Variable element per customer served Actual activity Amount in flexible budget Employee salaries and wages: Variable element per customer served Actual activity Variable portion of the amount Fixed element per month Amount in flexible budget Travel expenses: Variable element per customer served Actual activity Amount in flexible budget Amount of other expenses Net operating income