Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Adger Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable

Adger Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August.
Fixed Element per Month Variable Element per Customer Served Actual Total for August
Revenue $4,000 $120,500
Employee salaries and wages $41,500 $1,000 $71,000
Travel expenses $550 $14,800
Other expenses $38,800 $39,800
When the company prepared its planning budget at the beginning of August, it assumed that 31 customers would have been served. However, 29 customers were actually served during August. The activity variance for total expenses for August would have been closest to:

$3,100 F

$3,100 U

$350 U

$350 F

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_2

Step: 3

blur-text-image_3

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

More Books

Students also viewed these Accounting questions

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago