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		$ 5,500	$ 204,000
Employee salaries and wages	$ 59,000	$ 2,000	$ 137,900
Travel expenses		$ 510	$ 17,500
Other expenses	$ 38,000		$ 36,200

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.

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

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		$ 5,500	$ 204,000
Employee salaries and wages	$ 59,000	$ 2,000	$ 137,900
Travel expenses		$ 510	$ 17,500
Other expenses	$ 38,000		$ 36,200

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.

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

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		$ 5,500	$ 204,000
Employee salaries and wages	$ 59,000	$ 2,000	$ 137,900
Travel expenses		$ 510	$ 17,500
Other expenses	$ 38,000		$ 36,200

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.

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

Marvel Parts, Incorporated, manufactures auto accessories. One of the companys products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 1,060 hours each month to produce 2,120 sets of covers. The standard costs associated with this level of production are:

	Total	Per Set of Covers
Direct materials	$ 43,460	$ 20.50
Direct labor	$ 9,540	4.50
Variable manufacturing overhead (based on direct labor-hours)	$ 4,664	2.20
		$ 27.20

During August, the factory worked only 500 direct labor-hours and produced 2,200 sets of covers. The following actual costs were recorded during the month:

	Total	Per Set of Covers
Direct materials (8,000 yards)	$ 44,000	$ 20.00
Direct labor	$ 10,340	4.70
Variable manufacturing overhead	$ 5,500	2.50
		$ 27.20

At standard, each set of covers should require 2.5 yards of material. All of the materials purchased during the month were used in production.

Required:

Compute the materials price and quantity variances for August.

Compute the labor rate and efficiency variances for August.

Compute the variable overhead rate and efficiency variances for August.

Note: Do not round intermediate calculations. 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.

Brummer Corporation makes a product whose variable overhead standards are based on direct labor-hours. The quantity standard is 0.20 hours per unit. The variable overhead rate standard is $9.50 per hour. In January the company produced 4,750 units using 980 direct labor-hours. The actual variable overhead rate was $9.40 per hour.

The variable overhead efficiency variance for January is:

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		$ 5,500	$ 204,000
Employee salaries and wages	$ 59,000	$ 2,000	$ 137,900
Travel expenses		$ 510	$ 17,500
Other expenses	$ 38,000		$ 36,200

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.

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

Note: 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.