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 per Customer Served $6,000 1,400 $590 Total for May 190,000 114,100 $ 17,100 $ 43,400 per Month Revenue Employee salaries and wages 67, 000 Travel expenses 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 Required: 1. What amount of revenue would be included in Adger's flexible budget for May? unt of revenue included in the flexible budget 2. What amount of employee salaries and wages would be included in Adger's flexible budget for May? ount of employee salaries and wages included in the flexible budget 3. What amount of travel expenses would be included in Adger's flexible budget for May? ount of travel expenses included in the flexible budget 4. What amount of other expenses would be included in Adger's flexible budget for May? unt of other expenses

1. Revenue in flexible budget = $182,000

2. Employees salaries = $93,000

3. Travel Expenses = $22750

4. Other expenses= $30000

Explanation:

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Given

Estimated customers = 30

Actual customers = 35

A flexible budget is a budget that adjusts or flexes with changes in volume or activity

1. Calculating the amount of revenue would be included in Adger's flexible budget for May.

Revenue = Variable element per customer * number of customer

Variable element per customer = $5,200

Number of customer; here, we'll make use of the actual number of customers; not the expected number.

So, number of customer = 35

Since there's no Variable element per customer, revenue is calculated as follows

Revenue in flexible budget = $5200 * 35 = $182,000

2. Calculating employees' salaries and wages in flexible budget

Also, we'll make use of actual number of customers.

Employees salaries = Fixed element + number of customers * Variable element

Employees salaries = $51,000 + 35 * $1,200

Employees salaries = $51,000 + $42,000

Employees salaries = $93,000

3). Calculating Travel expenses

Since there's no Variable element per customer

ravel expenses would be calculated by

Variable element per customer* number of customers

Travel Expenses = $650 * 35 = $22750

4. Calculating Other expenses

Here, there's no Variable element per customer

So, other expenses = fixed element

Other expenses= $30000

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