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 Month
Variable Element per Well Serviced
Actual Total for November
Revenue
$
4,400
$
190,100
Employee salaries and wages
$
56,800
$
1,100
$
103,400
Servicing materials
$
700
$
29,800
Other 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: please provide details
Select one:
a. $34,800
b. $35,300
c. $32,016
d. $35,050
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