Homework #1 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 Variable Element per Actual Element Customer Served Total per Month for May Revenue $ 5,000 $ 160,000 Employee $ 50,000 $ 1,100 $ 88,000 salaries and wages Travel expenses $ 600 $ 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. 1. What net operating income would appear in Adger's flexible budget for May? 2. What is Adger's 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.) 3. 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.)