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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: Variable Element per Actual Fixed Element Customer Total per Month Served for May 6,300 199,000 Revenue $70,000 1,700 127,300 Employee salaries and wages 620 18,000 Travel expenses 46100 $49,000 Other expenses 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
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