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.

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

14. What activity variance would Adger report in May with respect to its revenue?

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