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 Variable Element per Customer Served $ 56,000 $ 35,000 $ 6,000 $ 1,700 $ 900 Actual Total for May $ 195,500 $ 114,700 $ 28,900 $ 33,500 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. 15. What activity variances would Adger report with respect to each of its expenses for May? 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. Employee salaries and wages Travel expenses Other expenses Activity Variance
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 Variable Element per Customer Served $ 56,000 $ 35,000 $ 6,000 $ 1,700 $ 900 Actual Total for May $ 195,500 $ 114,700 $ 28,900 $ 33,500 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. 15. What activity variances would Adger report with respect to each of its expenses for May? 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. Employee salaries and wages Travel expenses Other expenses Activity Variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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hrd.9
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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
Variable Element
per Customer
Served
$ 56,000
$ 35,000
Actual Total for
May
$ 6,000
$ 1,700
$ 195,500
$ 114,700
$ 900
$ 28,900
$ 33,500
When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May
the company actually served 35 customers.
15. What activity variances would Adger report with respect to each of its expenses for May?
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.
Employee salaries and wages
Travel expenses
Other expenses
Activity Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbc31ddd1-d716-4893-9bcb-13062e28d8ce%2F6a7aff2e-0f98-43c6-b113-9ccaf6c096bc%2F5wr5go_processed.jpeg&w=3840&q=75)
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 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
Variable Element
per Customer
Served
$ 56,000
$ 35,000
Actual Total for
May
$ 6,000
$ 1,700
$ 195,500
$ 114,700
$ 900
$ 28,900
$ 33,500
When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May
the company actually served 35 customers.
15. What activity variances would Adger report with respect to each of its expenses for May?
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.
Employee salaries and wages
Travel expenses
Other expenses
Activity Variance
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