Question

... Research Survey Pa... mi Degree in Three St. Campuswire & Amazon.com Kidde current s tabil. Amazon.comiButt funde work Help Save & Ch Required information The Foundational 15 (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: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Actual Element Variable Element Total per Month per Customer served for May $ 5,400 5203.000 $ 53,000 $ 1.400 108.500 $ 750 $ 27,700 $ 32,000 $ 30, see 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 Foundational 9.1 15 of 15 Score answer > et e é a $ 5 .9 W

1.	What amount of revenue would be included in Adgers flexible budget for May?

2.	What amount of employee salaries and wages would be included in Adgers flexible budget for May?

3.	What amount of travel expenses would be included in Adgers flexible budget for May? 4. What amount of other expenses would be included in Adgers flexible budget for May? 5. What net operating income would appear in Adgers flexible budget for May?

6.	What is Adgers revenue variance for May?

7.	What is Adgers employee salaries and wages spending variance for May?

8.	What is Adgers travel expenses spending variance for May?

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?

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?

Answer 1

Adger corporation Revenue and spending Variances Flexible budget ( 40 customers ) Revenues Employee salaries and wages travel expenses Other expenses Net income Actual Results (40 customers) 2,03,000 1,08,500 27,700 30,800 36,000 -13,000 U 500 F 2,300 F 1,200 F - 17,000 U 216000 5400*40 109000 1400 * 40 + 53000 30000 750 * 40 32000 45,000 Adger corporation Activity varainces Planning budget 35 customers ) Flexible budget ( 40 customers ) 109000 1400 * 40 + 53000 30000 750 * 40 32000 1,71,000 Employee salaries and wages travel expenses Other expenses Net income -7,000 U -3,750 U 102000 1400 * 35 + 53000 26250 750 * 35 32000 1,60,250 -10,750 U Answer 1 - $ 216000 Answer 2 - 109000 Answer 3 - $ 30000 Answer 4 - 32000 Answer 5 - $ 45000 Answer 6 - 13000 ( Unfav.) Answer 7-500 (fav.) Answer 8 - 2300 (fav.) Answer 9 - 1200 (fav.) Answer 10 - $ 189000 ( 540035) Answer 11 - $ 102000 Answe 12 - $ 26250 Answer 13 - $ 32000 Answer 14 - (216000 - 189000) = 27000 ( fav.) Answer 15 - 7000 ( unfav.), 3750 ( unfav.), O

Adger corporation Actual Revenue and Flexible Results (40 customers) spending budget (40 customers) Variances Revenues Employee salaries and wages travel expenses Other expenses 2,03,000 -13,000 U 216000 5400 40 1,08,500 500 F 109000 1400 4053000 2,300 F 27,700 30000 750 40 1,200 F -15,800 U 30,800 66,800 32000 77,000 Net income Adger corporation Flexible Planning budget 35 customers) Activity budget (40 customers) varainces Employee salaries and wages travel expenses Other expenses 109000 1400 4053000 102000 1400 35+53000 -7,000 U 3,750 U 30000 750 40 26250 750 35 32000 0 32000 Net income 1,71,000 -10,750 U 1,60,250 Answer 1 - $ 216000 Answer 2 - 109000 Answer 3-$30000 Answer 4 32000 Answer 5- 77000 Answer 6 13000 (Unfav.) Answer 7-500 (fav.) Answer 8-2300 (fav.) Answer 9 1200 (fav.) Answer 10 $ 189000 (5400* 35) Answer 11- $102000 Answe 12- $26250 Answer 13-$32000 Answer 14-(216000 189000) = 27000 (fav.) Answer 15- 7000 (unfav.), 3750 (unfav.), 0