Dreckman Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. Fixed Element per MonthVariable Element per Customer ServedActual Total for AugustRevenue $4,000$125,500Employee salaries and wages$46,600 $900$74,700Travel expenses $600$18,800Other expenses$33,100 $33,500When the company prepared its planning budget at the beginning of August, it assumed that 36 customers would have been served. However, 31 customers were actually served during August.The "Other expenses" in the flexible budget for August would have been closest to:
A. $28,847
B. $33,100
C. $38,903
D. $33,500
Answer: B
Business
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