Cosden 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.     Fixed Element per Month Variable Element per Well Serviced Revenue       $ 4,700 Employee salaries and wages $ 41,300   $ 1,000 Servicing materials       $ 600 Other expenses $ 40,200           When the company prepared its planning budget at the beginning of May, it assumed that 29 wells would have been serviced. However, 31 wells were actually serviced during May. The total expenses in the flexible budget for May would have been closest to

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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hi, i am having difficulties calculating the right answer for this question, i dont know what i am doing wrong. please help with the following

 

Cosden 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.

 

  Fixed Element per Month Variable Element per Well Serviced
Revenue       $ 4,700
Employee salaries and wages $ 41,300   $ 1,000
Servicing materials       $ 600
Other expenses $ 40,200      
 

 

When the company prepared its planning budget at the beginning of May, it assumed that 29 wells would have been serviced. However, 31 wells were actually serviced during May.

The total expenses in the flexible budget for May would have been closest to:

 

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