!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. Thecompany provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actualresults for May as shown below:RevenueEmployee salaries and wagesTravel expensesOther expensesFixed Elementper Month$ 57,000$ 36,000Variable Elementper CustomerServed$ 5,800$ 1,800$ 950Activity varianceActual Total forMay$ 217,000$ 128,100$ 35,300$ 34,400When preparing its planning budget the company estimated that it would serve 35 customers per month; however, duringMay the company actually served 40 customers.14. What activity variance would Adger report in May with respect to its revenue? (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.)

Solution.. Standard revenue per unit = $5,800 Actual Production = 40 Customers Planning…

[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 ac results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Actual Total for May $ 217,000 $ 128, 100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; howeve May the company actually served 40 customers. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance "for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive val

[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 ac results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Actual Total for May $ 217,000 $ 128, 100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; howeve May the company actually served 40 customers. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance "for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive val

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Amount of other expenses Actual Total for May $ 217,000 $ 128, 100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. 13. What amount of other expenses would be included in Adger's planning budget for May?
! 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 $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $950 Actual Total for May $ 217,000 $ 128,100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. Amount of employees salaries and wages included in the planning budget 11. What amount of employee salaries and wages would be included in Adger's planning budget for May?
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