Required information

$[$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 that it uses for budgeting purposes and the actual

results for May as shown below:

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:

What amount of revenue would be included in Adger's flexible budget for May?

Amount of revenue included in the flexible budgetAdger 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 $ $5,800$ $ $189,500$

Employee salaries and wages $ $54,000$ $ $1,500$ $ $105,900$

Travel expenses $ $800$ $ $25,600$

Other expenses $ $33,000$ $ $31,700$

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.