[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 ac results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Actual Total for May $ 217,000 $ 128, 100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; howeve May the company actually served 40 customers. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance "for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive val

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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[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:
Revenue
Employee salaries and wages
Travel expenses
Other expenses
Fixed Element
per Month
$ 57,000
$ 36,000
Variable Element
per Customer
Served
$ 5,800
$ 1,800
$ 950
Activity variance
Actual Total for
May
$ 217,000
$ 128,100
$ 35,300
$ 34,400
When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during
May the company actually served 40 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.)
Transcribed Image Text:! 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: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Activity variance Actual Total for May $ 217,000 $ 128,100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 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.)
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