5. Sathre 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 Variable Month Element per Well Serviced Revenue $ 4,500 Employee salaries and wages $ 33,000 $ 900 Servicing materials $ 700 Other expenses $ 35,400 When the company prepared its planning budget at the beginning of December, it assumed that 34 wells would have been serviced. However, 32 wells were actually serviced during December The "Employee salaries and wages" in the flexible budget for December would have been closest to: a. S57,600 b. $61,800 c. $63,600 d. $66,400 e. None of the above. The answer is 6. Mongelli Family Inn is a bed and breakfast establishment in a converted 100-year-old mansion. The Inn's guests appreciate its gourmet breakfasts and individually decorated rooms. The Inn's overhead budget for the most recent month appears below: Activity level 90 guests Variable overhead costs: Supplies $ 234 Laundry 315 Fixed overhead costs: Utilities 220 Salaries and wages 4,290 Depreciation 2.680 Total overhead cost $ 7,739 The Inn's variable overhead costs are driven by the number of guests. What would be the total budgeted overhead cost for a month if the activity level is 99 guests? a. $7,793.90 b. $61,541.00 c. $8,512.90 d. $7.739.00 e. None of the above. The answer is