[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 calacier and wager Fixed Element per Month € 58 aga Variable Element per Customer Served $ 6,000 $1.990 Actual Total for May $ 194,500 $ 122 500

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[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:
Fixed Element per
Month
Revenue
Employee salaries and wages
$ 58,000
Travel expenses
Other expenses
$ 37,000
Variable Element
per Customer
Served
$ 6,000
$ 1,900
$ 500
Actual Total for
May
$ 194,500
$ 123,500
$ 14,700
$ 35,300
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.
6. What is Adger's revenue variance for May?
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero
variance). Input all amounts as positive values.
Revenue variance
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: Fixed Element per Month Revenue Employee salaries and wages $ 58,000 Travel expenses Other expenses $ 37,000 Variable Element per Customer Served $ 6,000 $ 1,900 $ 500 Actual Total for May $ 194,500 $ 123,500 $ 14,700 $ 35,300 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. 6. What is Adger's revenue variance for May? Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance). Input all amounts as positive values. Revenue variance
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