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.

11.

What amount of employee salaries and wages would be included in Adgers 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

rev: 11_01_2014_QC_58006

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12.

Required information

12.	What amount of travel expenses would be included in Adgers planning budget for May?

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

rev: 11_01_2014_QC_57647

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eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.

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13.

Required information

13.	What amount of other expenses would be included in Adgers planning budget for May?

Amount of other expenses

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14.

Required information

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

Flexible Budget	Activity Variance		Planning Budget

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eBook: Prepare a flexible budget.eBook: Prepare a report showing activity variances.eBook: Prepare a report showing revenue and spending variances.

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15.

Required information

15.	What activity variances would Adger report with respect to each of its expenses? (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.)

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