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			$	5,200	$	170,000
Employee salaries and wages	$	51,000	$	1,200	$	92,700
Travel expenses			$	650	$	20,600
Other expenses	$	30,000			$	29,000

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.

5.

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

6.	What is Adgers 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.)

7.	What is Adgers 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.)

Actual Resuts Spending VarianceF Actual Results Spending Variance Flexible Budget