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: |
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. |
7.
value: 0.66 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: 0.66 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: 0.66 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: 0.66 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: 0.66 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: 0.66 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: 0.66 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: 0.66 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: 0.76 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.) |
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