Required information [The following information applies to the questions display

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Required information [The following information applies to the questions displayed below.] Part 6 of 15 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: Variable Element Element per Actual Fixed points per Month Customer Served $6,000 $190,000 Total for May Revenue Employee salaries and wages Travel expenses Other expense eBook $67,000 $1,400 $114,100 $ 590 17,100 s 43,400 $46,000 Print 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. References 6. What is Adger's revenue variance 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.) evenue variance

Explanation / Answer

6) Revenue variance = (35*6000)-190000 = 20000 Unfavourable

7) Employee wages and salaries spending variance = (1400*35+67000)-114100 = 1900 Favourable

8) Travel expenses spending variance = (590*35)-17100 = 3550 Favourable

9) Other expenses spending variance = (46000-43400) =2600 Favourable

10) Amount of revenue included in the planning budget = (6000*30) = 180000

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