Question

KO Saved HelpS [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. Bevande Employee salaries and wagen Travel expenses Other expenses Fixed Element Variable Element Actual per p er Customer Total Month Served for May $ 5,000 S 150.000 $50,000 $ 1,100 S88,000 $ 600 $19.000 $36.000 34,500 when preparing is planning budget the company estimated that it would serve 30 customers per month: however, during May the company actually served 35 customers What amount of employee salaries and wages would be included in Adgers planning budget for May and wage included in the planne bude

Answer 1

Amount of employees salaries and wages included in planning budet	=	$       83,000
Workings:
Amount of employees salaries and wages included in planning budet:
[$50000 + ($1100 X Estimeted number of customers)]
[$50000 + ($1100 X 30)]
[$50000 + $33000]
$                                                                                                                                  83,000

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