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 total expenses in the flexible budget for October would have been closest to:
A. $149,200
B. $147,600
C. $130,029
D. $141,200
Answer: A
You might also like to view...
If stockholders want to know how money flowed into and out of the company, what financial statement would they use?
A) Income statement B) Statement of cash flows C) Balance sheet D) Statement of retained earnings
Your company has decided to require all employees to wear picture ID badges, starting next week. Numerous steps are involved to get a photo ID. What would you do to alert the employees of the requirement?
a. Send the procedural message in an email to all employees. b. Ask each employee to come in for a meeting with you. c. Schedule a company-wide meeting to explain the procedure. d. Send each employee a form letter to his or her home about the requirement.
Which of the following is an assumption of the economic order quantity model?
A. Lead time for the receipt of orders is constant and known. B. Quantity (or volume) discounts are available. C. Multiple products are involved. D. Demand is not known.
The controller at Horizon, Inc. needs new computers for the accounting department. However, there are no guidelines specifying whether the controller can approve purchases of office equipment
In the above situation, which internal control procedure needs strengthening? A) assignment of responsibilities B) competent, reliable, and ethical personnel C) separation of duties D) documents