3. What amount of travel expenses would be included in Adger’s flexible budget for May? 1. What amount of revenue would be included in Adger’s flexible budget for May?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 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   $ 5,600 $ 182,000
Employee salaries and wages $ 55,000 $ 1,600 $ 110,300
Travel expenses   $ 850 $ 27,200
Other expenses $ 34,000   $ 32,600

When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers.

 

REQUIRED QUESTIONS:)

3. What amount of travel expenses would be included in Adger’s flexible budget for May?

1. What amount of revenue would be included in Adger’s flexible budget for May?

 

 

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