Question
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 | $ | 217,000 | ||
| Employee salaries and wages | $ | 57,000 | $ | 1,800 | $ | 128,100 |
| Travel expenses | $ | 950 | $ | 35,300 | ||
| Other expenses | $ | 36,000 | $ | 34,400 | ||
| 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. |
| 6. | What is Adgers revenue variance for May? (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.)
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eBook & Resources
eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.
Check my work
7.
Required information
| 7. | What is Adgers employee salaries and wages spending variance for May? (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.) |
| |||||||||
eBook & Resources
eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.
Check my work
8.
Required information
| 8. | What is Adgers travel expenses spending variance for May? (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.)
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eBook & Resources
eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.
Check my work
9.
Required information
| 9. | What is Adgers other expenses spending variance for May? (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.) |
| |||||||||
eBook & Resources
eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.
Check my work
10.
Required information
| 10. | What amount of revenue would be included in Adgers planning budget for May? |
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Modern Internal Auditing An Operational Approach
Authors: Victor Zinn Brink
3rd Edition
0471065242, 978-0471065241
