Required information The following Information applies to the questions displayed below.j 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 Actual Element Variable Element Total per Month per Customer Served for May 190,000 5 114,100 $ 17,100 $ 43,400 6,000 1,400 $ 590 Revenue Employee salaries and wages Travel expenses Other expenses 67,000 s 46,000 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? mount of revenue included in the flexible budget 2. What amount of employee salaries and wages would be included In Adger's flexible budget for May? Amount of employee salaries and wages included in the flexible budget 3. What amount of travel expenses would be Included In Adger's flexible budget for May? Amo ount of travel expenses included in the flexible budget 4. What amount of other expenses would be included in Adger's flexible budget for May? Amount of other expenses 5. What net operating income would appear in Adger's flexible budget for May? Net operating income 6. 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 posltive values.) evenue variance 7. What is Adger's employee salaries and wages spending variance for May? (Indicete the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero varlance). Input all amounts as positive values.) Spending variance 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "Fl" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Spending variance 9. What is Adger's other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values.) Spending variance 10. What amount of revenue would be Included In Adger's planning budget for May? mount of revenue included in the planning budget 11. What amount of employee salaries and wages would be included in Adger's planning budget for May? ount of employees salaries and wages included in the planning budget 12. What amount of travel expenses would be Included in Adger's planning budget for May? ount of travel expenses included in the planning budget 13. What amount of other expenses would be included in Adger's planning budget for May? Amount of other expenses 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 unfevorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) ctivity variance 15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input ell amounts as positive values.) Activity Variance Employee salaries and wages Travel expenses Other expenses
