Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you solve these? Available with McGra Adger Corporation is a service company that measures its output based on the number of custom- ers served.

image text in transcribed

Can you solve these?

Available with McGra Adger Corporation is a service company that measures its output based on the number of custom- ers 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: Variable Element Fixed Element per Customer Actual Total per Month Served for May $5,000 $160,000 Revenue $50,000 $1,100 $88,000 Employee salaries and wages ... $600 Travel expenses $19,000 Other expenses $36,000 $34,500 When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers. Required: 1. What amount of revenue would be included in Adger's flexible budget for May? 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? 3. What amount of travel expenses would be included in Adger's flexible budget for May? 4. What amount of other expenses would be included in Adger's flexible budget for May? 5. What net operating income would appear in Adger's flexible budget for May? 6. What is Adger's revenue variance for May? 7. What is Adger's employee salaries and wages spending variance for May? 8. What is Adger's travel expenses spending variance for May? 9. What is Adger's other expenses spending variance for May? 10. What amount of revenue would be included in Adger's planning budget for May? 11. What amount of employee salaries and wages would be included in Adger's planning budget for May? 12. What amount of travel expenses would be included in Adger's planning budget for May? 13. What amount of other expenses would be included in Adger's planning budget for May? 14. What activity variance would Adger report in May with respect to its revenue? 15. What activity variances would Adger report with respect to each of its expenses

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

Recommended Textbook for

Conflict Management And Negotiation Skills For Internal Auditors

Authors: Joan Pastor, PhD

1st Edition

0894136089, 978-0894136085

More Books

Students also viewed these Accounting questions

Question

What is the preferred personality?

Answered: 1 week ago

Question

What is the relationship between humans?

Answered: 1 week ago