Prowse 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 costestimates that it uses for budgeting purposes.Fixed ElementVariable Element per Wellper MonthServicedRevenue$4,000$1,000Employee salaries and wagesServicing materialsother expenses$43,800$ 600$38,200A total of 42 wells were actually serviced during October.The revenue in the company's flexible budget for October would have been closest to: The revenue in the company's flexible budget for October would have been closest to:Multiple Choice$168,000$148,000$170,400$150,114

Revenue in the month of October for 42 wells serviced: = 42 wells X $4,000 per well = $168,000.

Answered: Fixed Element Variable Element per Well…

Fixed Element Variable Element per Well per Month Serviced Revenue $4,000 Employee salaries and wages $43,800 $1,000 $ 600 Servicing materials Other expenses $38, 200

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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