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Required information The Foundational 15 [LO9-1, LO9-2, LO9-3] The following information applies to the questions displayed below.] Adger Corporation is a service company that measures
Required information The Foundational 15 [LO9-1, LO9-2, LO9-3] 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: Fixed Element Variable Element Actual per Customer Served 6,000 1,400 $ 590 Total for May 190,000 114,100 $ 17,100 $43,400 per Revenue Employee salaries and wages Travel expenses Other expenses Month $ 67,000 $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 Foundational 9-1 Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget 3. What amount of travel expenses would be included in Adger's flexible budget for May? Amou nt of travel expenses included in the flexible budget 5. What net operating income would appear in Adger's flexible budget for May? Net operating income 7. What is Adger's 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.) Spending variance None
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