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 net operating income would appear in Adger's flexible budget? Revenue -see Q1 Expenses: Employee salaries and wages - see Q2 Travel expenses - see Q3 Other expenses - see Q4 Net operating income What is Adger's revenue variance? Actual results (a) Flexible Budget (b) * Revenue variance (a) - (b) * If actual revenue is less than flexible budget amount, the revenue variance would be unfavorable and vice versa. Note: To earn credit for variances, must state whether variance is favorable (F) or unfavorable (U)