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: Fixed Element Variable Element per Customer Served $ 5,200 $ 1,200 650 Actual Total for May $ 170,000 $ 92,700 $ 20,600 $ 29,000 per Month Revenue Employee salaries and wages Travel expenses Other expenses $51,000 $ $30,000 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. . What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of ach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero ariance). Input all amounts as positive values.) ctivity variance F
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.
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 | $ | 5,200 | $ | 170,000 | |||
| Employee salaries and wages | $ | 51,000 | $ | 1,200 | $ | 92,700 | |
| Travel expenses | $ | 650 | $ | 20,600 | |||
| Other expenses | $ | 30,000 | $ | 29,000 | |||
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.
Questions:
A. What activity variance would Adger report in May with respect to its revenue? (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.)
B. 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.)
![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:
Fixed
Element Variable Element
per Customer
Served
$ 5,200
$ 1,200
650
Actual
Total
for May
$ 170,000
$92,700
$20,600
$ 29,000
per
Month
Revenue
Employee salaries and wages
Travel expenses
Other expenses
$51,000
$
$30,000
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.
14. What activity variance would Adger report in May with respect to its revenue? (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%2F4069fa52-b27a-46d1-ae2b-57cc56c25309%2Fdc4cf5a9-8920-494d-a2de-9969a4862044%2Ffg0tr9h_processed.png&w=3840&q=75)
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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:
Fixed
Element Variable Element
Actual
Total
for May
$ 170,000
$ 92,700
$20,600
$ 29,000
per
Month
per Customer
Served
$ 5,200
$ 1,200
650
Revenue
Employee salaries and wages
Travel expenses
Other expenses
$51,000
$
$30,000
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.
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
Employee salaries and wages
Travel expenses
Other expenses
$
O None](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4069fa52-b27a-46d1-ae2b-57cc56c25309%2Fdc4cf5a9-8920-494d-a2de-9969a4862044%2Fd7k3oak_processed.png&w=3840&q=75)
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