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 variablecost estimates that it uses for budgeting purposes and the actual results of operations for November.Fixed ElementVariable Element perActual Total forper MonthWell ServicedNovemberRevenue$4,400$190, 100Employee salaries and wages$56,800$103,400$ 29,800$ 35,300$1,100Servicing materials$ 700Other expenses$34,800When the company prepared its planning budget at the beginning of November, it assumed that 39 wells would have been serviced. However, 43 wells were actuallyserviced 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

Planning budget is the budget prepared for budgeted level of activity which includes sales revenue,…

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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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