Question
The Foundational 15 (Algo) [LO9-1, LO9-2, LO9-3] [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its
The Foundational 15 (Algo) [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 per Month | Variable Element per Customer Served | Actual Total for May | |||||
| Revenue | $ | 5,800 | $ | 217,000 | |||
| Employee salaries and wages | $ | 57,000 | $ | 1,800 | $ | 128,100 | |
| Travel expenses | $ | 950 | $ | 35,300 | |||
| Other expenses | $ | 36,000 | $ | 34,400 | |||
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.
9. What is Adgers other expenses spending variance for May?
10. What amount of revenue would be included in Adgers planning budget for May?
11. What amount of employee salaries and wages would be included in Adgers planning budget for May?
12. What amount of travel expenses would be included in Adgers planning budget for May?
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The Audit Process Principles Practice And Cases
Authors: Iain Gray, Stuart Manson
3rd Edition
1861529465, 9781861529466
