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			$	5,700	$	209,500
Employee salaries and wages	$	64,000	$	1,100	$	106,400
Travel expenses			$	560	$	19,000
Other expenses	$	43,000			$	40,700

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

2. What is Adger's revenue variance for May?

Actual Results	Revenue Variance		Flexible Budget

3.

What is Adgers employee salaries and wages spending variance for May?

Actual Results	Spending Variance		Flexible Budget

4.What is Adgers travel expenses spending variance for May?

Actual Results	Spending Variance		Flexible Budget

5. What is Adger's other expenses spending variance for May?

Actual Results	Spending Variance		Flexible Budget

6. What amount of revenue would be inculded in Adger's planning budget for May?

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

7. What amount of employee salaries and wages would be inculded in Adger's 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	$0

8. What amount of travel expenses would be inculded in Adger's planning budget for May?

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

9. What amount of other expenses would be included in Adger's planning budget for May?

Amount of other expenses

10. What exctiving Variance would Adger report in May with respect to its revenue?

Flexible Budget	Activity Variance		Planning Budget

11. What activity Variances would Adger report with respect to each of its expenses?

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