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Pickrel Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed
Pickrel 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 Variable Element per Revenue Employee salaries and wages. Servicing materials Other expenses Fixed Element per Month $ 53,700 $ 34,400 Well Serviced $ 5,500 $ 1,300 $ 600 When the company prepared its planning budget at the beginning of November, it assumed that 27 wells would have been serviced. However, 31 wells were actually serviced during November. The amount shown for "Other expenses" in the planning budget for November would have been closest to: Multiple Choice $33,800 $34,400 $34,100 $29,439
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