education exam 6 Help SaveExit Submit Milot Corporation is a

education exam 6 Help Save&Exit; Submit Milot 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 and the actual resuts of operations April. Fixed Element per Actual Element Well Total for per Morn Apri eBook Revenue Employee salaries and wages $41,400 Servicing materials Other expenses 3,800$112,900 900 $69,500 $ 500 15,100 s 30,200 $29,600 When the company prepareckits planning budget at the beginning of April, it assumed that 32 wells would have been serviced However, 29 wells were actually serviced during April. The amount shown for revenue in the planning budget for April would have been closest to Multiple Choice Next K Prev 17 of 33

Solution

Solution: Answer is 2nd option $121,600 Working Notes: Amount shown as Revenue in planning budget for April = Planned wells to be serviced x Variable element per well serviced (revenue per well) = 32 wells x $3,800 per well =$121,600 Please feel free to ask if anything about above solution in comment section of the question.