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

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 $ 5,000 $ 160,000
Employee salaries and wages $ 50,000 $ 1,100 $ 88,000
Travel expenses $ 600 $ 19,000
Other expenses $ 36,000 $ 34,500

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.

Required:

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

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

Master Your Money Insider Secrets For Financial Success

Authors: William J. Ramirez

1st Edition

979-8865784432

More Books

Students also viewed these Accounting questions

Question

Which data type should be used to store a date in MySQL ?

Answered: 1 week ago