Question 6 3 pts Solorati 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. Fixed Element per Variable Element per Well Month Serviced Revenue $4,500 Employee salaries and $56,400 $ 900 wages Servicing materials $ 700 Other expenses $35,400 When the company prepared its planning budget at the beginning of December, it assumed that 34 wells would have been serviced. However, 32 wells were actually serviced during December. The "Employee salaries and wages" in the flexible budget for December would have been closest to: $85,200 $87,000 $89,888 $84,600 Question 7 3 pts Palmero Inc. 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 and the actual results of operations for December. Fixed Element Variable Element per Actual Total for per Month Well Serviced December Revenue $3,500 $159,800 Employee salaries and $41,500 $1,000 $ 87,900 wages Servicing $ 600 $ 27,400 materials Other expenses $30,000 $ 29,500 When the company prepared its planning budget at the beginning of December, it assumed that 40 wells would have been serviced. However, 45 wells were actually serviced during December. The variance for net operating income in the Revenue and Spending Variances column of a report comparing actual results to the flexible budget for December would have been closest to: $1,000 Unfavorable $10,500 Unfavorable $1,000 Favorable $10,500 Favorable