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Dreckman Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and
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. Fixed Element per Month Variable Element per Actual Total for Revenue Employee salaries and wages $ 46,600 Travel expenses Customer Served $ 4,000 $ 900 $ 600 August $ 125,500 $ 74,700 $ 18,800 Other expenses $ 33,100 $ 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 flexible budget for August would have been closest to Multiple Choice $33,500 $38,903 $28,847 $33,100 Prev 9 of 28 Next >
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