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 Variable Element per Customer Served Actual Total
for May Revenue $ 5,400 $ 203,000 Employee salaries and wages $ 53,000 $ 1,400 $ 108,500 Travel expenses $ 750 $ 27,700 Other expenses $ 32,000 $ 30,800
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.
1. What amount of revenue would be included in Adgerâs flexible budget for May?
- Amount of revenue included in flexible budget:
2.What amount of employee salaries and wages would be included in Adgerâs flexible budget for May?
3.What amount of travel expenses would be included in Adgerâs flexible budget for May?
4. What amount of other expenses would be included in Adgerâs flexible budget for May?
5. What net operating income would appear in Adgerâs flexible budget for May?
6. What is Adgerâs revenue variance for May? (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.)
7. What is Adgerâs employee salaries and wages spending variance for May? (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.)
8. What is Adgerâs travel expenses spending variance for May? (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.)
9. What is Adgerâs other expenses spending variance for May? (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.)
10. What is Adgerâs other expenses spending variance for May? (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.)
11. What amount of employee salaries and wages would be included in Adgerâs planning budget for May?
12. What amount of travel expenses would be included in Adgerâs planning budget for May?
13. What amount of other expenses would be included in Adgerâs planning budget for May?
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.)
15. What activity variances would Adger report with respect to each of its expenses for May? (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.)
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 | Variable Element per Customer Served | Actual Total for May | |||||
| Revenue | $ | 5,400 | $ | 203,000 | |||
| Employee salaries and wages | $ | 53,000 | $ | 1,400 | $ | 108,500 | |
| Travel expenses | $ | 750 | $ | 27,700 | |||
| Other expenses | $ | 32,000 | $ | 30,800 | |||
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.
1. What amount of revenue would be included in Adgerâs flexible budget for May?
- Amount of revenue included in flexible budget:
2.What amount of employee salaries and wages would be included in Adgerâs flexible budget for May?
3.What amount of travel expenses would be included in Adgerâs flexible budget for May?
4. What amount of other expenses would be included in Adgerâs flexible budget for May?
5. What net operating income would appear in Adgerâs flexible budget for May?
6. What is Adgerâs revenue variance for May? (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.)
7. What is Adgerâs employee salaries and wages spending variance for May? (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.)
8. What is Adgerâs travel expenses spending variance for May? (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.)
9. What is Adgerâs other expenses spending variance for May? (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.)
10. What is Adgerâs other expenses spending variance for May? (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.)
11. What amount of employee salaries and wages would be included in Adgerâs planning budget for May?
12. What amount of travel expenses would be included in Adgerâs planning budget for May?
13. What amount of other expenses would be included in Adgerâs planning budget for May?
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.)
15. What activity variances would Adger report with respect to each of its expenses for May? (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.)
Related questions
Required information
[The following information applies to the questionsdisplayed below.]
Adger Corporation is a service company that measures its outputbased on the number of customers served. The company provided thefollowing fixed and variable cost estimates that it uses forbudgeting purposes and the actual results for May as shownbelow:
| Fixed Element per Month | Variable Element per Customer Served | Actual Total for May | |||||
| Revenue | $ | 5,200 | $ | 170,000 | |||
| Employee salaries and wages | $ | 51,000 | $ | 1,200 | $ | 92,700 | |
| Travel expenses | $ | 650 | $ | 20,600 | |||
| Other expenses | $ | 30,000 | $ | 29,000 | |||
When preparing its planning budget the company estimated that itwould serve 30 customers per month; however, during May the companyactually served 35 customers.
Required:
1. What amount of revenue would be included in Adgerâs flexiblebudget for May?
2. What amount of employee salaries and wages would be includedin Adgerâs flexible budget for May?
3. What amount of travel expenses would be included in Adgerâsflexible budget for May?
4. What amount of other expenses would be included in Adgerâsflexible budget for May?
5. What net operating income would appear in Adgerâs flexiblebudget for May?
6. What is Adgerâs revenue variance for May? (Indicatethe effect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Inputall amounts as positive values.)
7. What is Adgerâs employee salaries and wages spending variancefor May? (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 positivevalues.)
8. What is Adgerâs travel expenses spending variance for May?(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.)
9. What is Adgerâs other expenses spending variance for May?(Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance). Input all amounts as positive values.)
10. What amount of revenue would be included in Adgerâs planningbudget for May?
11. What amount of employee salaries and wages would be includedin Adgerâs planning budget for May?
12. What amount of travel expenses would be included in Adgerâsplanning budget for May?
13. What amount of other expenses would be included in Adgerâsplanning budget for May?
14. What activity variance would Adger report in May withrespect to its revenue? (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
15. What activity variances would Adger report with respect toeach of its expenses for May? (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
Required information
[The following information applies to the questionsdisplayed below.]
Adger Corporation is a service company that measures its outputbased on the number of customers served. The company provided thefollowing fixed and variable cost estimates that it uses forbudgeting purposes and the actual results for May as shownbelow:
| Fixed Element per Month | Variable Element per Customer Served | Actual Total for May | |||||
| Revenue | $ | 5,200 | $ | 170,000 | |||
| Employee salaries and wages | $ | 51,000 | $ | 1,200 | $ | 92,700 | |
| Travel expenses | $ | 650 | $ | 20,600 | |||
| Other expenses | $ | 30,000 | $ | 29,000 | |||
When preparing its planning budget the company estimated that itwould serve 30 customers per month; however, during May the companyactually served 35 customers.
11. What amount of employee salaries and wages would be includedin Adgerâs planning budget for May?
12. What amount of travel expenses would be included in Adgerâsplanning budget for May?
13. What amount of other expenses would be included in Adgerâsplanning budget for May?
14. What activity variance would Adger report in May withrespect to its revenue? (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values.)
15. What activity variances would Adger report with respect toeach of its expenses for May? (Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all
| Vanderhyde Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,300 tenant-days, but its actual level of activity was 3,340 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:
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| Vanderhyde Kennel | |||||||||||||||
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| For the Month Ended May 31 | |||||||||||||||
| Formula | Planning Budget | Activity Variances | U (Unfav) or F (Fav) | Flexible Budget | Spending Variances | U (Unfav) or F (Fav) | Actual Results (Given) | ||||||||
| Tenant Days | n/a | ||||||||||||||
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| Foods & Supplies | |||||||||||||||
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| Administrative Expenses | |||||||||||||||
| Total Expenses | |||||||||||||||
| Net Operating Income | |||||||||||||||
