0 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 Variable Element per Customer Served $6,000 $1,400 $ 590 Fixed Element per Month $ 67,000 $ 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. Actual Total for May $ 190,000 $ 114,100 $ 17,100 $ 43,400 Spending variance 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorab- "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
0 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 Variable Element per Customer Served $6,000 $1,400 $ 590 Fixed Element per Month $ 67,000 $ 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. Actual Total for May $ 190,000 $ 114,100 $ 17,100 $ 43,400 Spending variance 8. What is Adger's travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorab- "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...
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