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: Revenue Employee salaries and vages Travel expenses Other expenses Fixed Element per Month $ 51,000 $ 30,000 Variable Element per Customer Served $ 5,200 $ 1,200 $ 650 Actual Total for May $ 170,000 $ 92,700 $ 20,600 $ 29,000 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. 10. What amount of revenue would be included in Adger's planning budget for May?
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: Revenue Employee salaries and vages Travel expenses Other expenses Fixed Element per Month $ 51,000 $ 30,000 Variable Element per Customer Served $ 5,200 $ 1,200 $ 650 Actual Total for May $ 170,000 $ 92,700 $ 20,600 $ 29,000 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. 10. What amount of revenue would be included in Adger's planning budget for May?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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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 for budgeting purposes and the actual results for May
as shown below:
Revenue
Employee salaries and vages
Travel expenses
Other expenses
Fixed Element
per Month
$ 51,000
$ 30,000
Variable Element
per Customer
Served
$ 5,200
$ 1,200
$ 650
Amount of revenue included in the planning budget
When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May
the company actually served 35 customers.
10. What amount of revenue would be included in Adger's planning budget for May?
Actual Total for
May
$ 170,000
$ 92,700
$ 20,600
$ 29,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F944787db-1369-43c8-9dbf-8e8809585dad%2F36f9a8d4-1338-423e-afb8-1a97b470341a%2Faydj4pd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
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 for budgeting purposes and the actual results for May
as shown below:
Revenue
Employee salaries and vages
Travel expenses
Other expenses
Fixed Element
per Month
$ 51,000
$ 30,000
Variable Element
per Customer
Served
$ 5,200
$ 1,200
$ 650
Amount of revenue included in the planning budget
When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May
the company actually served 35 customers.
10. What amount of revenue would be included in Adger's planning budget for May?
Actual Total for
May
$ 170,000
$ 92,700
$ 20,600
$ 29,000
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