Dreckman Corporation is a service company that measures its output by the number ofcustomers served. The company has provided the following fixed and variable cost estimatesthat it uses for budgeting purposes and the actual results of operations for August.a.b.RevenueEmployee salariesC.d.and wagesTravel expensesOther expensesFixed Element perMonth$33,500$38,903$28,847$33,100$ 46,600$ 33,100When the company prepared its planning budget at the beginning of August, it assumed that 36customers would have been served. However, 31 customers were actually served duringAugust.The "Other expenses" in the flexible budget for August would have been closest to:Variable Element perCustomer Served$ 4,000$ 900$600Actual Total forAugust$ 125,500$ 74,700$18,800$ 33,500

Dreckman Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. Actual Total for August $ 125,500 $74,700 and wages $ 18,800 Travel expenses Other expenses $ 33,100 $33,500 When the company prepared its planning budget at the beginning of August, it assumed that 36 Revenue Employee salaries Fixed Element per Variable Element per Month Customer Served $4,000 $ 900 $600 $46,600

Dreckman Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for August. Actual Total for August $ 125,500 $74,700 and wages $ 18,800 Travel expenses Other expenses $ 33,100 $33,500 When the company prepared its planning budget at the beginning of August, it assumed that 36 Revenue Employee salaries Fixed Element per Variable Element per Month Customer Served $4,000 $ 900 $600 $46,600

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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