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 Revenue Employee salaries and wages $ 69,000 Travel expenses $ 6,200 $ 1,600 $ 610 Actual Total for May $196,000 $ 122,900 $ 17,700 Other expenses $ 48,000 $ 45,200 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. 13. What amount of other expenses would be included in Adger's planning budget for May? Amount of other expenses

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 that it uses for budgeting purposes and the actual
results for May as shown below:
Fixed Element
Variable Element
per Customer
per Month
Served
Actual Total for
May
Revenue
$ 6,200
$ 196,000
Employee salaries and wages
$ 69,000
$ 1,600
$ 122,900
Travel expenses
$ 610
$ 17,700
Other expenses
$ 48,000
$ 45,200
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.
13. What amount of other expenses would be included in Adger's planning budget for May?
Amount of other expenses
Transcribed Image Text: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 Variable Element per Customer per Month Served Actual Total for May Revenue $ 6,200 $ 196,000 Employee salaries and wages $ 69,000 $ 1,600 $ 122,900 Travel expenses $ 610 $ 17,700 Other expenses $ 48,000 $ 45,200 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. 13. What amount of other expenses would be included in Adger's planning budget for May? Amount of other expenses
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