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 $ 6,300 $ 70,000 $ 1,700 $ 620 $ 49,000 Actual Total for May $ 199,000 $ 127,300 $ 18,000 $ 46,100 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget
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 $ 6,300 $ 70,000 $ 1,700 $ 620 $ 49,000 Actual Total for May $ 199,000 $ 127,300 $ 18,000 $ 46,100 When preparing its planning budget, the company estimated it would serve 30 customers per month; however, during May the company actually served 35 customers. Required: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Munabhai
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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
$ 70,000
Served
$ 6,300
$ 1,700
Actual Total for
May
$ 49,000
$ 199,000
$ 127,300
$ 620
$ 18,000
$ 46,100
When preparing its planning budget, the company estimated it would serve 30 customers per month; however,
during May the company actually served 35 customers.
Required:
1. What amount of revenue would be included in Adger's flexible budget for May?
Amount of revenue included in the flexible budget](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F73f396c5-0191-4ba5-9dfa-eb5187b39b8a%2F9cf2d9d5-5446-468b-a373-14a4a9ffe79d%2F1xvzjd_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
$ 70,000
Served
$ 6,300
$ 1,700
Actual Total for
May
$ 49,000
$ 199,000
$ 127,300
$ 620
$ 18,000
$ 46,100
When preparing its planning budget, the company estimated it would serve 30 customers per month; however,
during May the company actually served 35 customers.
Required:
1. What amount of revenue would be included in Adger's flexible budget for May?
Amount of revenue included in the flexible budget
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