a.

b.

c.

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. Variable Element Fixed Element Actual per Customer Total for per Month Served August Revenue $ 4,000 $125,500 Employee salaries and wages $46,600 $ 900 $74.700 Travel expenses $ 600 $18,800 Other expenses $33,900 $33,500 When the company prepared its planning budget at the beginning of August, it assumed that 36 customers would have been served. However, 31 customers were actually served during August. The "Other expenses" in the planning budget for August would have been closest to: $33,500 O $33.900 O $38.903 $28,847 Herlocker Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable Element per Container Refurbished $ 4,400 $ 1,100 $ $ 42,700 Revenue Employee salaries and wages Refurbishing materials Other expenses 600 $ 29,100 When the company prepared its planning budget at the beginning of February, it assumed that 29 containers would have been refurbished. The company actually refurbished 28 containers in February. The amount shown for revenue in the flexible budget for February would have been closest to: $122,200 $123,200 $127,600 $119,600 Madison Corporation is an oil well service company that measures its output by the number of wells verviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes Fixed Element per Month Revenue Employee salaries and wages Servicing materials Other expenses Variable Element per Well Serviced $ 4,800 $ 1.200 $ $47.400 700 $29.500 When the company prepared its planning budget at the beginning of July, it assumed that 32 wells would have been serviced. However, 35 wells were actually serviced. The activity variance for "other expenses" for July would have been closest to: $29.500 U $29.500 F it cannot be determined from the information provided O $0