Prowse Corporation is an oil well service company that measu

Prowse Corporation is an oil we\'ll 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 Variable Element Element Revenue Employee salaries and wages Servicing materials Other expenses 4,000 $43,800$1,80e s 600 38,200 A total of 42 wells were actually serviced during October The total expenses in the flexible budget for October would have been closest to Mutiple Choice $47600 $130.029

Solution

Calculation of Total expenses in the flexible budget for October Variable Costs - Salaries and Wages [$1000 * 42] $42,000.00 - Servicing Materials [$600 * 42] $25,200.00 Fixed Expenses - Salaries and Wages $43,800.00 - Other Expenses $38,200.00 Total Expenses for October $149,200.00 The total expenses in the flexible budget for October would have been closest to $1,47,200