The Adger Corporatio rvice company that mea res its output based on the number of cust mers ser 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 Employee salaries and wages Travel expenses Other expenses Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 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. Activity Variance $ 35,300 $ 34,400 15. What activity variances would Adger report with respect to each of its expenses 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.)
The Adger Corporatio rvice company that mea res its output based on the number of cust mers ser 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 Employee salaries and wages Travel expenses Other expenses Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 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. Activity Variance $ 35,300 $ 34,400 15. What activity variances would Adger report with respect to each of its expenses 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.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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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
Employee salaries and wages
Travel expenses
Other expenses
Variable Element
per Customer
Served
$ 5,800
$ 1,800
$ 950
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.
Actual Total for
May
$ 217,000
$ 128,100
$ 35,300
$ 34,400
15. What activity variances would Adger report with respect to each of its expenses 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.)
Activity Variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fedb99595-74c8-4f84-8847-3de8d9dd40fc%2F3edd20a7-601b-4b09-a259-e3bc9d5056b1%2F60lo03d_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
Employee salaries and wages
Travel expenses
Other expenses
Variable Element
per Customer
Served
$ 5,800
$ 1,800
$ 950
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.
Actual Total for
May
$ 217,000
$ 128,100
$ 35,300
$ 34,400
15. What activity variances would Adger report with respect to each of its expenses 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.)
Activity Variance
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