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 Variable Element per Actual Total for per Month Well Serviced November Revenue $4,400 $1,100 $ 700 $190, 100 Employee salaries and wages $56,800 Servicing materials other expenses $103,400 $ 29,800 $ 35,300 $34,800 When the company prepared its planning budget at the beginning serviced during November. The amount shown for "Other expenses" in the planning budget for November would have been closest to: November, it assumed that 39 wells would have been serviced. However, 43 wells were actually

Excel Applications for Accounting Principles
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Chapter23: Flexible Budgeting (flexbud)
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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
Variable Element per
Actual Total for
per Month
Well Serviced
November
Revenue
$4,400
$190, 100
Employee salaries and wages
$56,800
$103,400
$ 29,800
$ 35,300
$1,100
Servicing materials
$ 700
Other expenses
$34,800
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:
Transcribed Image Text: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 Variable Element per Actual Total for per Month Well Serviced November Revenue $4,400 $190, 100 Employee salaries and wages $56,800 $103,400 $ 29,800 $ 35,300 $1,100 Servicing materials $ 700 Other expenses $34,800 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:
Multiple Choice
$35,050
$35,300
$32,016
$34,800
Transcribed Image Text:Multiple Choice $35,050 $35,300 $32,016 $34,800
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