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 | $ | 5,900 | $ | 216,500 | |||
Employee salaries and wages | $ | 66,000 | $ | 1,300 | $ | 116,200 | |
Travel expenses | $ | 580 | $ | 19,700 | |||
Other expenses | $ | 45,000 | $ | 42,500 | |||
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 9-7
7. What is Adger’s employee salaries and wages 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.)
Actual results for employee salaries and wages = $ 116200
Flexible budget results for employee salaries and wages = ( 40 customers *1300 ) + 66000 = $ 118000
Adger’s employee salaries and wages spending variance for May =
$ 116200 - 118000 = $ 1800 ( fav. )
Revenue and spending variances are the difference between the actual results and the flexible budget whereas Activity variance are the difference between the flexible budget and the planning budget. |
Adger Corporation is a service company that measures its output based on the number of customers...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...
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 $ 5,900 $ 216,500 Employee salaries and wages $ 66,000 $ 1,300 $ 116,200 Travel expenses $ 580 $ 19,700 Other expenses $ 45,000...