Barsness 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 November. Fixed Element per MonthVariable Element per Well ServicedActual Total for NovemberRevenue $4,400$190,100Employee salaries and wages$56,800 $1,100$103,400Servicing materials $700$29,800Other expenses$34,800 $35,300?When the company prepared its planning budget at the beginning of November, it assumed that 39 wells would have been serviced. However, 43 wells were actually serviced during November.?The amount shown for "Other expenses" in the planning budget for November would have been closest to:
A. $35,300
B. $32,016
C. $34,800
D. $35,050
Answer: C
You might also like to view...
You should emphasize your most important ideas by placing them in __________________ in your document
a. sequential order b. quotes c. opening positions d. the margins
The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method which is
a. is used for tax purposes b. must be used for financial statement purposes c. is required by the SEC d. expenses an asset over a single year because capital acquisitions must be expensed in the year purchased
How do salespeople represent the interests of customers within the firm?
A. by providing information to marketers on current trends B. by offering suggestions for promotional activities C. by providing market feedback on competitors D. by sharing customer likes and dislikes with marketers and product designers E. by gathering sales data on customer purchases
Income Summary is a temporary account only used for the closing process.
Answer the following statement true (T) or false (F)