Adger Corporation is a service company that measures its output based on the number of customers...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 per Month for May Revenue per Customer Served $ 6,000 $1,400 $590 $ 190,000 Employee salaries and vages $67,000 Travel expenses $ 114,100 $ 17,100 Other expenses $46,000 $ 43,400 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: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget 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 per Month for May Revenue per Customer Served $ 6,000 $1,400 $590 $ 190,000 Employee salaries and vages $67,000 Travel expenses $ 114,100 $ 17,100 Other expenses $46,000 $ 43,400 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: 1. What amount of revenue would be included in Adger's flexible budget for May? Amount of revenue included in the flexible budget
Expert Answer:
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
Students also viewed these accounting questions
-
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...
-
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...
-
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...
-
Presented below is information related to Larkspur Inc.'s inventory, assuming Larkspur uses lower-of-LIFO cost-or-market. (per unit) Skis Boots Parkas Historical cost $224.20 $125.08 $62.54 Selling...
-
Assume the same information as in E14-4B, except that McGee Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 6% in pricing the...
-
Paymore Products places orders for goods equal to 75% of its sales forecast in the next quarter. Paymore's cash payments to its suppliers are under the assumption that the firm pays for its goods...
-
While designing a mixer-settler extraction system, you obtain a mass transfer correlation from a book. Unfortunately, the book does not explain which model was used. Which model would you use to...
-
Following are comparative balance sheets for Millco, Inc., at January 31 and February 28, 2011: Required: Prepare a statement of cash flows that explains the change that occurred in cash during the...
-
Capital budgeting is concerned wiRogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000;...
-
Olive Corporation was formed and began operations on January 1, 2018. The corporations income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Consider a firm that is not currently paying dividends. At the end of 5 years it will pay a dividend of $2, which will grow at 3% forever. The risk-free rate is 5%, and the company has an equity Beta...
-
Superior Micro Products uses the weighted-average method in its process costing system. Data for the Assembly Department for May appear below: Work in process, May 1 Cost added during May Equivalent...
-
Video: (if you want to watch it) https://www.imdb.com/title/tt1967596/ Stores: Giant Eagle Walmart Whole foods Stop and Shop Kaune's Neighborhood Market Please answer these questions for each of the...
-
What is the value of a bond that has a par value of $1,000, a coupon rate of 17.24% paid annually and that matures in 8 years? Assume a required rate of return on this bond is 13.53%
-
The integrated rate law allows chemists to predict the reactant concentration after a certain amount of time, or the time it would take for a certain concentration to be reached. The integrated rate...
-
You are looking at purchasing a home and would like to obtain $100,000 mortgage amortized over 25 years. The current interest rate on a 3-year term is 7% compounded semi-annually. What will your...
-
Write C programs expression.h, expression.c to evaluate arithmetic infix expression. Use the queue data structure of Q1 to represent postfix expression. Use the stack data structure of Q2 to...
-
Determine by direct integration the values of x for the two volumes obtained by passing a vertical cutting plane through the given shape of Fig. 5.21. The cutting plane is parallel to the base of the...
-
Ogilvy Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable cost per unit: Direct materials...
-
The Excel worksheet form that follows is to be used to recreate Example E and Exhibit 8-7. Download the workbook containing this form from Connect. On the website you will also receive instructions...
-
Morrow Corporation had only one job in process during May-Job X32Z-and had no finished goods inventory on May 1. Job X32Z was started in April and finished during May. Data concerning that job appear...
-
Consider the following income statement data from the Mono Company: a. Prepare a comparative income statement, showing increases and decreases in dollars and in percentages. b. Comment briefly on the...
-
Financial Statement Disclosures Which of the following is not a common form of financial statement disclosure? a. Notes to financial statements. b. Supplemental information. c. Parenthetical...
-
Financial Statement Analysis Limitations Which of the following is not considered a limitation of financial statement analysis? a. Firms may use different accounting methods. b. Firms may be audited...
Study smarter with the SolutionInn App