Milot 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 and the actual results of operations for April. Fixed Element per MonthVariable Element per Well ServicedActual Total for AprilRevenue $3,800$112,900Employee salaries and wages$41,400 $900$69,500Servicing materials $500$15,100Other expenses$29,600 $30,200?When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April.?The amount shown for revenue in the planning budget for April would have been closest to:
A. $112,900
B. $124,579
C. $110,200
D. $121,600
Answer: D
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