Milot 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 April. Variable Fixed Element Element per Actual Total for April $ 112,900 $ 69,500 $ 15,100 $ 30, 200 per Month Well Serviced $ 3,800 $ 900 $ 500 Revenue $ 41,400 Employee salaries and wages Servicing materials Other expenses $ 29,600 When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. The "Servicing materials" in the flexible budget for April would have been closest to:

Milot 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 April. Variable Fixed Element Element per Actual Total for April $ 112,900 $ 69,500 $ 15,100 $ 30, 200 per Month Well Serviced $ 3,800 $ 900 $ 500 Revenue $ 41,400 Employee salaries and wages Servicing materials Other expenses $ 29,600 When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April. The "Servicing materials" in the flexible budget for April would have been closest to:

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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! Required information [The following information applies to the questions displayed below.] Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below: Revenue Employee salaries and wages Travel expenses Other expenses Fixed Element per Month $ 57,000 $ 36,000 Variable Element per Customer Served $ 5,800 $ 1,800 $ 950 Amount of other expenses Actual Total for May $ 217,000 $ 128, 100 $ 35,300 $ 34,400 When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers. 13. What amount of other expenses would be included in Adger's planning budget for May?
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