Adger Corporation is a service company that measures its output based on the number of customers served

Adger Corporation is a service company that measures its output based on the number of customers served

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			$	5,000	$	160,000
Employee salaries and wages	$	50,000	$	1,100	$	88,000
Travel expenses			$	600	$	19,000
Other expenses	$	36,000			$	34,500

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.

5.What net operating income would appear in AdgerAc€?cs flexible budget for May?

Net operating income:______

6.What is AdgerAc€?cs revenue 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:______ Revenue variance:_____:__ Flexible Budget:______

7.) What is AdgerAc€?cs 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:______ Spending Variance:_____:__ Flexible Budget:________ 8. What is AdgerAc€?cs travel 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.) Actual results:______ Spending Variance:_____:__ Flexible Budget:_____ 9. What is AdgerAc€?cs 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.) Actual results:_____ Spending variance:_____:__ Flexible budget:______ 10. What amount of revenue would be included in AdgerAc€?cs planning budget for May? Revenue:_xxxx_ Variable element per customer served:_____ Planned level of activity:_______ Amount in planning budget:_______ . 12. What amount of travel expenses would be included in AdgerAc€?cs planning budget for May? Travel expenses:_xxx_ Variable element per customer served:_____ Planned Activity:________ Amount in planning budget:_______ . 13. What amount of other expenses would be included in AdgerAc€?cs planning budget for May? Amount of other expenses:_______

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