Milot 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 April. Variable Fixed Element Element per Actual Total for April $ 112,900 $ 69,500 $ 15,100 $ 30, 200 per Month Well Serviced $ 3,800 $ 900 $ 500 Revenue $ 41,400 Employee salaries and wages Servicing materials Other expenses $ 29,600 When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. The "Servicing materials" in the flexible budget for April would have been closest to:

Milot 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 April. Variable Fixed Element Element per Actual Total for April $ 112,900 $ 69,500 $ 15,100 $ 30, 200 per Month Well Serviced $ 3,800 $ 900 $ 500 Revenue $ 41,400 Employee salaries and wages Servicing materials Other expenses $ 29,600 When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. The "Servicing materials" in the flexible budget for April would have been closest to:

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter23: Flexible Budgeting (flexbud)

Section: Chapter Questions

Problem 1R

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