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
[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. |
6. What is Adgers 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.)
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7.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.) |
8. What is Adgers travel expenses 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.)
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9. What is Adgers 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 (i.e., zero variance). Input all amounts as positive values.)
10. What amount of revenue would be included in Adgers planning budget for May?
Variable Element per Element Customer Total per Month Served for May Fixed Actual $ 6,000 $195,500 Revenue Employee salaries and wages $56,00O$ 1,700$ 114,700 Travel expenses Other expenses $ 900 $ 28,900 $33,500 $35,000 Actual Results Revenue Variance Flexible Budget Actual Results Revenue Variance Flexible Budget Actual Results Revenue Variance Flexible Budget Actual Results Revenue Variance Flexible Budget Revenue: Variable element per customer served Planned level of activity Amount in planning budgetStep by Step Solution
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