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	 	$ 5,000	$ 160,000
Employee salaries and wages	$ 50,000	$ 1,100	$ 88,000
Travel expenses	 	$ 600	$ 19,000
Other expenses	$ 36,000	 	$ 34,500
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.

What amount of other expenses would be included in Adger’s flexible budget for May?

To calculate the "Other Expenses" in Adger Corporation's flexible budget for May, let's analyze the given dataTo calculate the "Other Expenses" in Adger Corporation's flexible budget for May, let's analyze the given 

1. **Identify if "Other Expenses" are fixed or variable**:
   - The table shows "Other Expenses" as having only a **fixed component** of $36,000 with no variable component per customer served.

2. **Flexible Budget for Other Expenses**:
   - Since "Other Expenses" are fixed, they do not change with the number of customers served. Therefore, regardless of whether the company served 30 or 35 customers, "Other Expenses" in the flexible budget will remain the same at $36,000.

### Conclusion
The amount of "Other Expenses" included in Adger Corporation’s flexible budget for May is **$36,000**.

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Would you like a detailed breakdown of flexible budgeting or have further questions?

Here are related questions to explore:
1. How would a variable cost for "Other Expenses" affect the flexible budget?
2. What are the steps to create a flexible budget in a multi-service business?
3. How does a flexible budget differ from a static budget?
4. How could changes in customer demand impact a company's variable expenses?
5. What are some best practices for forecasting fixed and variable expenses in a service company?

**Tip:** In flexible budgeting, fixed costs remain constant regardless of activity levels, while variable costs adjust according to the actual output or service levels.

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		$ 5,000	$ 160,000
Employee salaries and wages	$ 50,000	$ 1,100	$ 88,000
Travel expenses		$ 600	$ 19,000
Other expenses	$ 36,000		$ 34,500
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.

What amount of other expenses would be included in Adger’s flexible budget for May?

Discover how to calculate the flexible budget for Adger Corporation's 'Other Expenses' in May. This example involves understanding fixed and variable costs and applying flexible budgeting concepts. Suitable for high school students studying advanced business math or accounting.

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