Multiple steps are requried for this question
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 | | | $ | 5,600 | | $ | 182,000 |
| Employee salaries and wages | $ | 55,000 | $ | 1,600 | | $ | 110,300 |
| Travel expenses | | | $ | 850 | | $ | 27,200 |
| Other expenses | $ | 34,000 | | | | $ | 32,600 |
|
When preparing its planning budget the company estimatedthat it would serve 30 customers per month; however, during May thecompany actually served 35 customers.
Please answer the following letters towards the question
a. What amount of revenue would be included in Adger’s flexiblebudget for May?
b. What amount of employee salaries and wages would be includedin Adger’s flexible budget for May?
c. What amount of travel expenses would be included in Adger’sflexible budget for May?
d. What amount of other expenses would be included in Adger’sflexible budget for May?
e. What net operating income would appear in Adger’s flexiblebudget for May?
f. What is Adger’s 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.)
g. What is Adger’s employee salaries and wagesspending variance 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.)
h. What is Adger’s 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.)
i What is Adger’s other expenses spendingvariance for May? (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positivevalues.)
j. What amount of revenue would beincluded in Adger’s planning budget for May?
k. What amount of employee salaries and wages wouldbe included in Adger’s planning budget for May?
l. What amount of travel expenses would be included in Adger’splanning budget for May?
m. What amount of other expenses would be included in Adger’splanning budget for May?
n. What activity variance would Adger report in May with respectto its revenue? (Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Input all amounts as positivevalues.)
o. What activity variances would Adger reportwith respect to each of its expenses for May? (Indicate theeffect of each variance by selecting "F" for favorable, "U" forunfavorable, and "None" for no effect (i.e., zero variance). Inputall amounts as positive values.)
