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: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Amount of revenue included in the planning budget 10. What amount of revenue would be included in Adger's planning budget for May? Actual Total for May $ 217,000 $ 128, 100 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. $ 35,300 $ 34,400
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: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Amount of revenue included in the planning budget 10. What amount of revenue would be included in Adger's planning budget for May? Actual Total for May $ 217,000 $ 128, 100 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. $ 35,300 $ 34,400
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
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Required information
[The following information applies to the questions displayed below.]
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:
Revenue
Employee salaries and wages
Travel expenses
Other expenses
Fixed Element
per Month
$ 57,000
$ 36,000
Variable Element
per Customer
Served
$ 5,800
$ 1,800
$ 950
Amount of revenue included in the planning budget
10. What amount of revenue would be included in Adger's planning budget for May?
Actual Total for
May
$ 217,000
$ 128,100
When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during
May the company actually served 40 customers.
$ 35,300
$ 34,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedb99595-74c8-4f84-8847-3de8d9dd40fc%2F887c0c18-5ed3-4afd-a1ec-cfe0868c7837%2F2a8082e_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
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:
Revenue
Employee salaries and wages
Travel expenses
Other expenses
Fixed Element
per Month
$ 57,000
$ 36,000
Variable Element
per Customer
Served
$ 5,800
$ 1,800
$ 950
Amount of revenue included in the planning budget
10. What amount of revenue would be included in Adger's planning budget for May?
Actual Total for
May
$ 217,000
$ 128,100
When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during
May the company actually served 40 customers.
$ 35,300
$ 34,400
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