Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 $ 6,200 $ 200,500
Employee salaries and wages $ 60,000 $ 2,100 $ 132,300
Travel expenses $ 520 $ 15,200
Other expenses $ 39,000 $ 37,100

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.

7. What is Adgers employee salaries and wages spending variance for May?

7 Required information The following information applies to the questions displayed below Part 7 of 15 dger 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 actua results for May as shown below: points Fixed Element Variable Element Actual per customer Served per Month Total for May eBook Eeploye salarles and vages 5 60,005,100 3 200,500 Revenue Employee salaries and wages 60,000 Travel expenses other expenses 132,300 15,200 s 37,100 $520 $39,000 Print 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. References 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.) nding variance Mc Graw Hill 1-7-8. 9- 15|of 15::: Next>

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Oil And Gas Industry IRS Audit Technique Guide

Authors: Internal Revenue Service

1st Edition

1304113434, 978-1304113436

More Books

Students also viewed these Accounting questions