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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			$	6,300		$	199,000
Employee salaries and wages	$	70,000	$	1,700		$	127,300
Travel expenses			$	620		$	18,000
Other expenses	$	49,000				$	46,100

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.

Required:

1. What amount of revenue would be included in Adgers flexible budget for May?

	Amount of revenue included in the flexible budget

2. What amount of employee salaries and wages would be included in Adgers flexible budget for May?

	Amount of employee salaries and wages included in the flexible budget

3. What amount of travel expenses would be included in Adgers flexible budget for May?

	Amount of travel expenses included in the flexible budget

4. What amount of other expenses would be included in Adgers flexible budget for May?

	Amount of other expenses

5. What net operating income would appear in Adgers flexible budget for May?

	Net operating income

6. What is Adgers 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.)

	Revenue variance

7. What is Adgers 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.)

Spending variance:______ _____

8. What is Adgers 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.)

Spending variance______ ______

9. What is Adgers 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.)

Spending variance______ ______

10. What amount of revenue would be included in Adgers planning budget for May?

Amount of revenue included in the planning budget:______

11. What amount of employee salaries and wages would be included in Adgers planning budget for May?

	Amount of employees salaries and wages included in the planning budget

12. What amount of travel expenses would be included in Adgers planning budget for May?

	Amount of travel expenses included in the planning budget

13. What amount of other expenses would be included in Adgers planning budget for May?

	Amount of other expenses

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.)

	Activity variance

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.)

	Activity Variance Employee salaries and wages Travel expenses Other expenses

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