Adger Corporation is a service company that measures its output based on the num served. The company provided the following fixed and variable cost estimates that it u purposes and the actual results for May as shown below: Variable Element Actual Total for May $160,000 $ 88,000 Fixed per Element Customer per Month Served $ 5,000 $ 50,000$ 1,100 Revenue Employee salaries and wages $ 600 Travel expenses Other expenses $ 36,000 $ 19,000 $ 34,500 When preparing its planning budget the company estimated that it would serve 30 cust however, during May the company actually served 35 customers.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Show transcribed image text 15.What activity variances would Adger report with respect to each of its expenses? (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 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: 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.

Adger Corporation is a service company that measures its output based on the num
served. The company provided the following fixed and variable cost estimates that it u
purposes and the actual results for May as shown below:
Variable
Element
Actual
Total
for May
$160,000
$ 88,000
Fixed
per
Element Customer
per Month Served
$ 5,000
$ 50,000$ 1,100
Revenue
Employee salaries and wages
$ 600
Travel expenses
Other expenses
$ 36,000
$ 19,000
$ 34,500
When preparing its planning budget the company estimated that it would serve 30 cust
however, during May the company actually served 35 customers.
Transcribed Image Text:Adger Corporation is a service company that measures its output based on the num served. The company provided the following fixed and variable cost estimates that it u purposes and the actual results for May as shown below: Variable Element Actual Total for May $160,000 $ 88,000 Fixed per Element Customer per Month Served $ 5,000 $ 50,000$ 1,100 Revenue Employee salaries and wages $ 600 Travel expenses Other expenses $ 36,000 $ 19,000 $ 34,500 When preparing its planning budget the company estimated that it would serve 30 cust however, during May the company actually served 35 customers.
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