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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
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 Revenue $4,587 Employee salaries and wages $42,115$1,127Refurbishing materials $ 642 Other expenses $29,458When the company prepared its planning budget at the beginning of February, it assumed that 26 containers would have been refurbished. Actual containers refurbished were 30. The amount shown for revenue in the planning budget for February would have been closest to:
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