[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 per Month		Variable Element per Customer Served		Actual Total for May
Revenue			$	6,100	$	223,500
Employee salaries and wages	$	68,000	$	1,500	$	126,000
Travel expenses			$	600	$	20,400
Other expenses	$	47,000			$	44,300

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

1.

value: 6.66 points

Required information

Required:
1.	What amount of revenue would be included in Adgers flexible budget for May?

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

2.

value: 6.66 points

Required information

2.	What amount of employee salaries and wages would be included in Adgers flexible budget for May?

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

3.

value: 6.66 points

Required information

3.	What amount of travel expenses would be included in Adgers flexible budget for May?

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

4.

value: 6.66 points

Required information

4.	What amount of other expenses would be included in Adgers flexible budget for May?

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

5.

value: 6.66 points

Required information

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

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

6.

value: 6.66 points

Required information

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.)

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

7.

value: 6.66 points

Required information

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.)

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

8.

value: 6.66 points

Required information

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.)

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

9.

value: 6.66 points

Required information

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.)

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

10.

value: 6.66 points

Required information

10.	What amount of revenue would be included in Adgers planning budget for May?

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

11.

value: 6.66 points

Required information

11.	What amount of employee salaries and wages would be included in Adgers planning budget for May?

rev: 11_01_2014_QC_58006

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

12.

value: 6.66 points

Required information

12.	What amount of travel expenses would be included in Adgers planning budget for May?

rev: 11_01_2014_QC_57647

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

13.

value: 6.66 points

Required information

13.	What amount of other expenses would be included in Adgers planning budget for May?

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

14.

value: 6.66 points

Required information

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 unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

References

eBook & Resources

WorksheetLearning Objective: 09-01 Prepare a flexible budget.Learning Objective: 09-03 Prepare a report showing revenue and spending variances.

Difficulty: 2 MediumLearning Objective: 09-02 Prepare a report showing activity variances.

Check my work

15.

value: 6.76 points

Required information

15.	What activity variances would Adger report with respect to each of its expenses? (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.)