Answered step by step
Verified Expert Solution
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started