Managerial Accounting
17th Edition
ISBN: 9781260247787
Author: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Publisher: RENT MCG
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Chapter 9, Problem 9F15
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.
Required (all computations pertain to the month of May):
9. What isAdger’s other expenses spending variance?
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Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for October.
Fixed Element per Month
Variable Element per Customer Served
Actual Total for October
Revenue
$ 4,100
$ 182,900
Employee salaries and wages
$ 42,300
$ 1,300
$ 98,800
Travel expenses
$ 700
$ 30,500
Other expenses
$ 31,500
$ 31,900
When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were actually served during October.
The spending variance for “Employee salaries and wages” for October would have been closest to:
Multiple Choice
A. $700 F
B. $5,800 U
C. $700 U
D. $5,800 F
Rients Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes and the actual results of operations for October.
Variable
Fixed
Element per
Element per
Customer
Actual Total
Month
Served
for October
$ 4,100
$ 1,300
$ 700
$ 182,900
$ 98,800
$ 30,500
$ 31,900
Revenue
Employee salaries and wages
Travel expenses
$ 42,300
Other expenses
$ 31,500
When the company prepared its planning budget at the beginning of October, it assumed that 39 customers would have been served. However, 44 customers were
actually served during October.
The spending variance for "Travel expenses" for October would have been closest to:
Dreckman Corporation is a service company that measures its output by the number of
customers served. The company has provided the following fixed and variable cost estimates
that it uses for budgeting purposes and the actual results of operations for August.
a.
b.
Revenue
Employee salaries
C.
d.
and wages
Travel expenses
Other expenses
Fixed Element per
Month
$33,500
$38,903
$28,847
$33,100
$ 46,600
$ 33,100
When the company prepared its planning budget at the beginning of August, it assumed that 36
customers would have been served. However, 31 customers were actually served during
August.
The "Other expenses" in the flexible budget for August would have been closest to:
Variable Element per
Customer Served
$ 4,000
$ 900
$600
Actual Total for
August
$ 125,500
$ 74,700
$18,800
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Chapter 9 Solutions
Managerial Accounting
Ch. 9 - Prob. 1QCh. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3QCh. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6QCh. 9 - Prob. 7QCh. 9 - Prob. 8QCh. 9 - Prob. 9QCh. 9 - Prob. 10Q
Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - The Excel worksheet form that appears below is to...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 2F15Ch. 9 - Prob. 3F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Adger Corporation is a service company that...Ch. 9 -
L09-1, LO9-2, LO9-3
Adger Corporation is a...Ch. 9 - Prob. 8F15Ch. 9 - Adger Corporation is a service company that...Ch. 9 - Prob. 10F15Ch. 9 - Prob. 11F15Ch. 9 - Prob. 12F15Ch. 9 - Prob. 13F15Ch. 9 - Prob. 14F15Ch. 9 - Prob. 15F15Ch. 9 - Prob. 1ECh. 9 - Prob. 2ECh. 9 -
EXERCISE 9-3 Revenue and Spending Variances...Ch. 9 - Prob. 4ECh. 9 - Prob. 5ECh. 9 - Prob. 6ECh. 9 - Prob. 7ECh. 9 - Prob. 8ECh. 9 - Prob. 9ECh. 9 - Prob. 10ECh. 9 - Prob. 11ECh. 9 - Prob. 12ECh. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Prob. 16ECh. 9 - Prob. 17PCh. 9 - Prob. 18PCh. 9 - Prob. 19PCh. 9 - Prob. 20PCh. 9 - Prob. 21PCh. 9 - Prob. 22PCh. 9 - Prob. 23PCh. 9 - Prob. 24CCh. 9 - Prob. 25CCh. 9 - Prob. 26C
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