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Category > Accounting Posted 18 Aug 2017 My Price 12.00

Adger Corporation

.

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.

5.What net operating income would appear in AdgerAc€?cs flexible budget for May?


Net operating income:______

6.What is AdgerAc€?cs 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.)

Actual results:______ Revenue variance:_____:__ Flexible Budget:______

 

7.) What is AdgerAc€?cs 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.)

Actual results:______ Spending Variance:_____:__ Flexible Budget:________

8.

What is AdgerAc€?cs 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.)

Actual results:______ Spending Variance:_____:__ Flexible Budget:_____

9.

What is AdgerAc€?cs 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.)

Actual results:_____ Spending variance:_____:__ Flexible budget:______

 

10. What amount of revenue would be included in AdgerAc€?cs planning budget for May?

Revenue:_xxxx_
Variable element per customer served:_____
Planned level of activity:_______
Amount in planning budget:_______

.

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

Travel expenses:_xxx_
Variable element per customer served:_____
Planned Activity:________

Amount in planning budget:_______

.

13. What amount of other expenses would be included in AdgerAc€?cs planning budget for May?
Amount of other expenses:_______

 

Answers

Maurice Tutor
(5)
Status NEW Posted 18 Aug 2017 03:08 PM My Price 12.00

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