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
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
![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:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad232079-c469-44fb-910a-34482099ad73%2F8c1b9b2b-f066-4ff7-bd3f-14b69a421f59%2Fvo7miy_processed.jpeg&w=3840&q=75)
![Multiple Choice
$35,050
$35,300
$32,016
$34,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fad232079-c469-44fb-910a-34482099ad73%2F8c1b9b2b-f066-4ff7-bd3f-14b69a421f59%2F9wpm82q_processed.jpeg&w=3840&q=75)
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