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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 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.
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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