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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

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     $ 5,000      $ 160,000
  Employee salaries and wages $ 50,000     $ 1,100      $ 88,000
  Travel expenses     $ 600      $ 19,000
  Other expenses $ 36,000         $ 34,500
 

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 AdgerAc€?cs flexible budget for May?

Revenue:________

Variable element per customer served:_______

Actual Activity:________

Amount in flexible budget:_________

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

Employees salaries and wages:-xxx-
Variable element per customer served:______
Actual Activity:_________
Variable portion of the amount:______
Fixed element per month:________
Amount in flexible budget:________

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

Travel expenses:-xxx-
Variable element per customer served:______
Actual activity:_______
Amount in flexible budget:_______
4. What amount of other expenses would be included in AdgerAc€?cs flexible budget for May?

Amount of other expenses:_______
5. What net operating income would appear in AdgerAc€?cs flexible budget for May?

Net operating income:______

Jun 23 2020 View more View Less

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