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			$	5,800	$	217,000
Employee salaries and wages	$	57,000	$	1,800	$	128,100
Travel expenses			$	950	$	35,300
Other expenses	$	36,000			$	34,400

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

1. Required information

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

Revenue:
Variable element per customer served
Actual activity
Amount in flexible budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

2. Required information

2.	What amount of employee salaries and wages would be included in Adgers flexible budget for May

Employee salaries and wages:
Variable element per customer served
Actual activity
Variable portion of the amount
Fixed element per month
Amount in flexible budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

3. Required information

3.	What amount of travel expenses would be included in Adgers flexible budget for May?

Travel expenses:
Variable element per customer served
Actual activity
Amount in flexible budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

4. Required information

4.	What amount of other expenses would be included in Adgers flexible budget for May?

Amount of other expenses

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

5. Required information

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

Net operating income

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

6. Required information

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.)

Actual Results	Revenue Variance	Flexible Budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

7. Required information

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 Results	Spending Variance	Flexible Budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

8. Required information

8.	What is Adgers travel expenses 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 Results	Spending Variance	Flexible Budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

9. Required information

9.	What is Adgers other expenses 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 Results	Spending Variance	Flexible Budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

10. Required information

10.	What amount of revenue would be included in Adgers planning budget for May?

Revenue:
Variable element per customer served
Planned level of activity
Amount in planning budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

11. Required information

11.	What amount of employee salaries and wages would be included in Adgers planning budget for May?

Employee salaries and wages:
Variable element per customer served
Planned activity
Variable portion of the amount
Fixed element per month
Amount in planning budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

12. Required information

12.	What amount of travel expenses would be included in Adgers planning budget for May?

Travel expenses:
Variable element per customer served
Planned activity
Amount in planning budget

rev: 11_01_2014_QC_57647

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

13. Required information

13.	What amount of other expenses would be included in Adgers planning budget for May?

Amount of other expenses

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

14. Required information

14.	What activity variance would Adger report in May with respect to its revenue?(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.)

Flexible Budget	Activity Variance	Planning Budget

eBook & Resources eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.Check my work

15. Required information

15.	What activity variances would Adger report with respect to each of its expenses?(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.)

Flexible Budget	Activity Variance	Planning Budget
Employee salaries and wages
Travel expenses
Other expenses