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 Element per Month |
Variable Element per Customer Served | Actual Total for May |
|||||
Revenue | $ | 5,600 | $ | 182,000 | |||
Employee salaries and wages | $ | 55,000 | $ | 1,600 | $ | 110,300 | |
Travel expenses | $ | 850 | $ | 27,200 | |||
Other expenses | $ | 34,000 | $ | 32,600 | |||
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:
9. What is Adger’s 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.)
10. What amount of revenue would be included in Adger’s planning budget for May?
11. What amount of employee salaries and wages would be included in Adger’s planning budget for May?
12. What amount of travel expenses would be included in Adger’s planning budget for May?
Answer- 9)-Adger’s other expenses spending variance for May is = $1400 Favorable.
Explanation-
ADGER CORPORATION | |||||
Revenue & Spending Variances | |||||
For the month ended May | |||||
Particulars | Flexible Budget | Actual Results | Variances | Remark | |
$ | $ | $ | |||
Revenue | 35 customer served*$5600 per customer | 196000 | 182000 | -14000 | Unfavorable |
Less:-Expenses | |||||
Employee salaries and wages | (35 customer served*$1600 per customer)+$55000 | 111000 | 110300 | 700 | Favorable |
Travel expenses | 35 customer served*$850 per customer | 29750 | 27200 | 2550 | Favorable |
Other expenses | 34000 | 32600 | 1400 | Favorable | |
Income from operations | 21250 | 11900 | -9350 | Unfavorable |
10)-The amount of revenue would be included in Adger’s planning budget for May= $168000.
11)- The amount of employee salaries and wages would be included in Adger’s planning budget for May= $103000.
12)- The amount of travel expenses would be included in Adger’s planning budget for May =$25500.
Explanation-
ADGER CORPORATION | ||
Planning Budget | ||
For the month ended May | ||
Particulars | Flexible Budget | |
$ | ||
Revenue | 30 customer served*$5600 per customer | 168000 |
Less:-Expenses | ||
Employee salaries and wages | (30 customer served*$1600 per customer)+$55000 | 103000 |
Travel expenses | 30 customer served*$850 per customer | 25500 |
Other expenses | 34000 | |
Income from opreations | 5500 |
Required information [The following information applies to the questions displayed below.] Adger Corporation is a service...
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 Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 5,600 $ 182,000 Employee salaries and wages $ 55,000 $ 1,600 $...
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 Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 5,600 $ 182,000 Employee salaries and wages $ 55,000 $ 1,600 $...
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 Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 5,600 $ 182,000 Employee salaries and wages $ 55,000 $ 1,600 $...
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 Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 5,400 $ 203,000 Employee salaries and wages $ 53,000 $ 1,400 $...
[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 $ 6,200 $ 196,000 Employee salaries and wages $ 69,000 $ 1,600 $ 122,900 Travel...
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 Element Variable Element Actual per Customer per Month Total for May $ 217,000 $128,100 $35,300 $ 34,400 Served Revenue $5,800 $1,800 Employee salaries and wages Travel...
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 Element Variable Element per per Customer Month Served $ 5,800 $ 54,000 $ 1,500 $ 800 $ 33,000 Revenue Employee salaries and wages Travel expenses Other...
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...
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 Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 6,000 $ 195,500 Employee salaries and wages $ 56,000 $ 1,700 $...
! 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 Element Variable Element Actual per Customer Served Total per Month for May $ 189,500 $ 105,900 $ 25,600 $ 5,800 $ 1,500 Revenue Employee salaries...