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 wages Travel expenses Other expenses Foundational 9-14 (Algo) Fixed Element per Month $ 55,000 $ 34,000 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. Variable Element per Customer Served $ 5,600 $ 1,600 $ 850 Answer is complete but not entirely correct. $ 5,283,600 F Activity variance Actual Total for May $ 182,000 $ 110,300 $ 27,200 $ 32,600 14. What activity variance would Adger report in May with respect to its revenue? Note: 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.

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 wages Travel expenses Other expenses Foundational 9-14 (Algo) Fixed Element per Month $ 55,000 $ 34,000 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. Variable Element per Customer Served $ 5,600 $ 1,600 $ 850 Answer is complete but not entirely correct. $ 5,283,600 F Activity variance Actual Total for May $ 182,000 $ 110,300 $ 27,200 $ 32,600 14. What activity variance would Adger report in May with respect to its revenue? Note: 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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