Adger Corporation is a service company that measures its output based on the number of customers...
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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 Variable Element Actual Total per Month per Customer Served for May Revenue $6,000 $ 190,000 Employee salaries and wages $67,000 $1,400 $ 114,100 Travel expenses $590 $17,100 $43,400 Other expenses $ 46,000 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 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 per Customer Served for May Revenue $6,000 $ 190,000 Employee salaries and wages $67,000 $1,400 $ 114,100 Travel expenses $590 $17,100 $43,400 Other expenses $ 46,000 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
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Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
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