In: Accounting
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 | $ | 6,600 | $ | 213,500 | |||
Employee salaries and wages | $ | 62,000 | $ | 2,300 | $ | 141,100 | |
Travel expenses | $ | 540 | $ | 15,700 | |||
Other expenses | $ | 41,000 | $ | 38,900 | |||
9. What is Adger’s other expenses spending variance for May? 10. What amount of revenue would be included in Adger’s planning budget for May? 11. What amount of employee salaries and wages would be included in Adger’s planning budget for May? 12. What amount of travel expenses would be included in Adger’s planning budget for May? 13. What amount of other expenses would be included in Adger’s planning budget for May? |