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Maxwell Corporation repairs heavy farming machinery. The company has determined the following fixed and variable cost estimates for budgeting purposes. Fixed Amount Per Month Variable
Maxwell Corporation repairs heavy farming machinery. The company has determined the following fixed and variable cost estimates for budgeting purposes.
Fixed Amount Per Month | Variable Amount Per Machine Repaired | |
---|---|---|
Revenue | $4,500 | |
Employee Salaries and Wages | $60,000 | $500 |
Repair Materials | $700 | |
Other Expenses | $30,000 |
The companys planning budget assumed that 100 machines would be repaired. The actual number of machines repaired during the period was 90 and the actual employee salaries and wages for the period were $100,000.
"Employee salaries and wages" in Maxwells flexible budget for the period would have been:
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