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Problem - 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 per Month
Variable Element per Customer Served
Actual Total for May
Revenue
$6,000
$195,500
Employee salaries and wages
$56,000
$1,700
$114,700
Travel expenses
$900
$28,900
Other expenses
$35,000
$33,500
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 - What amount of other expenses would be included in Adger's flexible budget for May?
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