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 $ 5,800 $ 184,000
Employee salaries and wages $ 65,000 $ 1,200 $ 105,300
Travel expenses $ 570 $ 16,500
Other expenses $ 44,000 $ 41,600

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.

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

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

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

4. What amount of other expenses 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

Accounting Theory

Authors: Ahmed Raihi-Belkaoui

5th Edition

1844800296, 978-1844800292

More Books

Students also viewed these Accounting questions

Question

Don't all countries want to have a "strong" currency?

Answered: 1 week ago

Question

1. Ask a member of the family to share a skill or hobby.

Answered: 1 week ago

Question

What benefit or advantage does your organization offer each public?

Answered: 1 week ago