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 that it uses 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 $ 35,000 Variable Element per Customer Served $ 5,000 $ 1,100 $ 600 Actual Total for May $ 160,000 $ 88,000 $ 19,000 $ 34,500 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. 4. What amount of other expenses would be included in Aager's flexible budget for May?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 that it uses 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
Amount of other expenses
$50,000
$36.000
$ 35,000
Variable Element
per Customer
Served
$5,000
$1,100
$ 600
Actual Total for
May
$ 160,000
$ 88,000
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.
4. What amount of other expenses would be included in Aager's flexible budget for May?
$ 19,000
$ 34,500
28
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 that it uses 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 Amount of other expenses $50,000 $36.000 $ 35,000 Variable Element per Customer Served $5,000 $1,100 $ 600 Actual Total for May $ 160,000 $ 88,000 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. 4. What amount of other expenses would be included in Aager's flexible budget for May? $ 19,000 $ 34,500 28
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