Prowse 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 $4,000Employee salaries and wages$43,800 $1,000Servicing materials $600Other expenses$38,200 A total of 42 wells were actually serviced during October.The "Employee salaries and wages" in the flexible budget for October would have been closest to:
A. $80,800
B. $84,000
C. $74,000
D. $85,800
Answer: D
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