0 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: Revenue Employee salaries and wages Travel expenses Other expenses Variable Element per Customer Served $6,000 $1,400 $ 590 Fixed Element per Month $ 67,000 $ 46,000 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. Actual Total for May $ 190,000 $ 114,100 $ 17,100 $ 43,400 Spending variance 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorab- "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
0 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: Revenue Employee salaries and wages Travel expenses Other expenses Variable Element per Customer Served $6,000 $1,400 $ 590 Fixed Element per Month $ 67,000 $ 46,000 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. Actual Total for May $ 190,000 $ 114,100 $ 17,100 $ 43,400 Spending variance 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorab- "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gadubhai
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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:
Revenue
Employee salaries and wages
Travel expenses
Other expenses
Fixed Element
per Month
$ 67,000
$ 46,000
Variable Element
per Customer
Served
$6,000
$1,400
$ 590
Spending variance
Actual Total for
May
$ 190,000
$ 114,100
$ 17,100
$ 43,400
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.
8. What is Adger's 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f40121d-73e1-42c0-9c04-01f2e93883a0%2F94c2afef-0318-4c51-8455-b343a9a1c092%2Fy4s8sgs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:0
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:
Revenue
Employee salaries and wages
Travel expenses
Other expenses
Fixed Element
per Month
$ 67,000
$ 46,000
Variable Element
per Customer
Served
$6,000
$1,400
$ 590
Spending variance
Actual Total for
May
$ 190,000
$ 114,100
$ 17,100
$ 43,400
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.
8. What is Adger's 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.)
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