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 budgetin purposes and the actual results for May as shown below: Fixed Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 6,000 $ 194,500 Employee salaries and wages $ 58,000 Travel expenses $ 1,900 $ 500 $ 123,500 $ 14,700 Other expenses $ 37,000 $ 35,300 When preparing its planning budget the company estimated that it would serve 30 customers per mon however, during May the company actually served 35 customers.
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 budgetin purposes and the actual results for May as shown below: Fixed Element per Month Variable Element per Customer Served Actual Total for May Revenue $ 6,000 $ 194,500 Employee salaries and wages $ 58,000 Travel expenses $ 1,900 $ 500 $ 123,500 $ 14,700 Other expenses $ 37,000 $ 35,300 When preparing its planning budget the company estimated that it would serve 30 customers per mon however, during May the company actually served 35 customers.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...
Related questions
Concept explainers
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.
Question
None
![Required information
1
[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:
Fixed Element
per Month
Revenue
Variable Element
per Customer
Served
$ 6,000
Actual Total for
May
$ 194,500
Employee salaries and wages
$ 58,000
Travel expenses
$ 1,900
$ 500
$ 123,500
$ 14,700
Other expenses
$ 37,000
$ 35,300
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61dbdfc4-5338-4084-8491-d9842155f80b%2Ff385b3ba-836a-4595-ba6c-4cd5aaf89d47%2Fa22gzbp_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
1
[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:
Fixed Element
per Month
Revenue
Variable Element
per Customer
Served
$ 6,000
Actual Total for
May
$ 194,500
Employee salaries and wages
$ 58,000
Travel expenses
$ 1,900
$ 500
$ 123,500
$ 14,700
Other expenses
$ 37,000
$ 35,300
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.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning