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 Employes salaries and wages Travel expenses Other expenses Fixed Element per Honth $ 50,000 Activity variance $36,000 + Variable Element per Customer Served $5,000 $1,100 5.000 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. Actual Total for May $ 160,000 $80,000 $ 19,000 $34,500 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 (ie, 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 Employes salaries and wages Travel expenses Other expenses Fixed Element per Honth $ 50,000 Activity variance $36,000 + Variable Element per Customer Served $5,000 $1,100 5.000 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. Actual Total for May $ 160,000 $80,000 $ 19,000 $34,500 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 (ie, zero variance). Input all amounts as positive values.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Question
Ashvin
![nces
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 wages
Travel expenses
Other expenses
Fixed Element per
Month
$ 50,000
$ 36,000
Activity variance
Variable Element
per Customer
Served
$5,000
$1,100
$ 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.
+
Actual Total for
bay
$ 160,000
$80,000
$ 19,000
$ 34,500
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 (.e., zero
variance). Input all amounts as positive values.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faab180b9-cd79-4108-953c-ae317bf45776%2Fcfbe1f2d-00c3-4422-9ac0-168f19f3c81c%2Fpzhj4er_processed.jpeg&w=3840&q=75)
Transcribed Image Text:nces
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 wages
Travel expenses
Other expenses
Fixed Element per
Month
$ 50,000
$ 36,000
Activity variance
Variable Element
per Customer
Served
$5,000
$1,100
$ 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.
+
Actual Total for
bay
$ 160,000
$80,000
$ 19,000
$ 34,500
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 (.e., zero
variance). Input all amounts as positive values.
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