Required information

Skip to question

[The following information applies to the questions displayed below.]

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		$ 5,000	$ 160,000
Employee salaries and wages	$ 50,000	$ 1,100	$ 88,000
Travel expenses		$ 600	$ 19,000
Other expenses	$ 36,000		$ 34,500

When preparing its planning budget, the company estimated 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 Adgers flexible budget for May?

2. what amount of employee salaries and wages would be included inAdger's Flexible budget for may?

3. what amount of travel expenses would be included in Adgers Flexible budget for May?

4. what amount of other expenses would be included in Adgers flexible budget for may?

5. what net operating income would appear in Adgers flexible budget for May?

6. what is Adgers revenue variance for May?

what is Adgers employee salaries and wages spending variance for May?