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 $5,000 $1,100 $600 Revenue Employee salaries and wages Travel expenses Other expenses Actual Total for May $160,000 $88,000 $ 19,000 $34,500 $50,000 $36,000 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 (all computations pertain to the month of May): What amount of other expenses would be included in Adger's planning budget? Other expense: Fixed other expense per month included in Planning budget What activity variance would Adger report with respect to its revenue? Revenue in Flexible Budget - see Q1 Revenue in Planning Budget - see Q10 *Activity Variance * If revenue in Flexible Budget is greater than revenue in planning budget, the activity variance would be favorable and vice versa. Note: To earn credit for variances, must state whether variance is favorable (F) or unfavorable (U)