Pickrel 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 Month Variable Element per Well ServicedRevenue $5,500Employee salaries and wages$53,700 $1,300Servicing materials $600Other expenses$34,400 When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November.The amount shown for revenue in the planning budget for November would have been closest to:
A. $149,981
B. $148,500
C. $170,500
D. $172,200
Answer: B
You might also like to view...
When terminating an employee,
A) focus on problem resolution. B) emphasize judgmental language. C) avoid confrontation by withholding negative feedback. D) allow the relationship to end negatively, and with hard feelings. E) make sure reasons are objectively verifiable.
The market overview in a marketing plan provides a summary of the whole marketing plan
Indicate whether the statement is true or false
Which of the following statements is true of certified checks?
A) Banks are obligated to certify checks for amounts greater than $10,000. B) Certified checks are payable at any time from the date they are issued. C) A drawer can stop payment on a certified check if it is indorsed. D) Banks can charge a fraction of the check value as a fee for certifying it.
Ratio analysis involves a comparison of the relationships between financial statement accounts to analyze the financial position and strength of a firm.
Answer the following statement true (T) or false (F)