Question

Required information [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 Actual Element Variable Element Total for May per Month per Customer Served 6,000 1,700 Revenue 195,500 114,700 28,900 33,500 Employee salaries and wages Travel expenses 56,000 900 Other expenses 35,000 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. Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget

Answer 1

Question No 1 Revenue 2 employee salaries and wages 3 Travel expense 4 other expense fixed component variable component per job flexible budget c=a+b*35 6000 210000 56000 1700 115500 900 35000 35000 31500 5 Net operating income = 210000-115500-31500-35000 28000 actual results flexible budget Jenue and spending varia a-b Question No 6 Revenue Zemployee salaries and wages 8 Travel expense 9 other expense 195500 114700 28900 33500 210000 115500 31500 35000 14500 U 800 F 2600 F 1500 F Question No 10 Revenue 11 employee salaries and wages 12 Travel expense 13 other expense fixed component variable component per job Planning budget c=a+b* 30 6000 180000 56000 1700 107000 900 27000 35000 35000 flexible budget Planning budget Question No 14 Revenue 15 employee salaries and wages 15 Travel expense 15 other expense 210000 115500 31500 35000 Activity variance la-b 180000 30000 F 107000 8500U 27000 4500U 35000 o None