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 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 $ 6,000 $ 194,500
Employee salaries and wages $ 58,000 $ 1,900 $ 123,500
Travel expenses $ 500 $ 14,700
Other expenses $ 37,000 $ 35,300

When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers.

9. What is Adgers other expenses spending variance 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

Students also viewed these Accounting questions

Question

11.6. Illustrate how to use break-even analysis

Answered: 1 week ago

Question

Understand how people development is used to retain talent.

Answered: 1 week ago