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 $ 5,500 Revenue $ 204,000 Employee salaries and wages $ 59,000 $ 2,000 $ 137,900 Travel expenses $ 510 $ 17,500 Other expenses $ 38,000 $36,200 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. 8. What is Adger's 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.)
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 $ 5,500 Revenue $ 204,000 Employee salaries and wages $ 59,000 $ 2,000 $ 137,900 Travel expenses $ 510 $ 17,500 Other expenses $ 38,000 $36,200 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. 8. What is Adger's 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.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 26BEB: Variable Cost Ratio, Contribution Margin Ratio Chillmax Company plans to sell 3,500 pairs of shoes...
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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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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
$ 5,500
$ 204,000
$ 2,000
$ 510
Revenue
Employee salaries and wages $ 59,000
Travel expenses
$36,200
Other expenses
$ 38,000
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.
$ 137,900
$ 17,500
8. What is Adger's 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F297a232d-84b0-4afc-be8b-dc49e64475d0%2Fe5894a7a-a1e7-4e41-9afc-2fe1e3572d72%2F8z03zc9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
Skip to question
[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 Variable Element per Customer Served Actual Total for May
$ 5,500
$ 204,000
$ 2,000
$ 510
Revenue
Employee salaries and wages $ 59,000
Travel expenses
$36,200
Other expenses
$ 38,000
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.
$ 137,900
$ 17,500
8. What is Adger's 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.)
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