What amount of other expenses would be included in budget

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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?

Reference no: EM132773259

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