Sathre Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per MonthVariable Element per Well ServicedRevenue $4,500Employee salaries and wages$56,400 $900Servicing materials $700Other expenses$35,400 When the company prepared its planning budget at the beginning of December, it assumed that 34 wells would have been serviced. However, 32 wells were actually serviced during December.The "Employee salaries and wages" in the flexible budget for December would have been closest to:
A. $85,200
B. $87,000
C. $89,888
D. $84,600
Answer: A
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Answer the following statement true (T) or false (F)
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Answer the following statement(s) true (T) or false (F)
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