Ask Question
6 September, 07:59

Prowse 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 Variable Element

per Month per Well Serviced

Revenue $ 4,000

Employee

salaries and wages $ 43,800 $ 1,000

Servicing materials $ 600

Other expenses $ 38,200

A total of 42 wells were actually serviced during October. The "Other expenses" in the flexible budget for October would have been closest to:

+4
Answers (1)
  1. 6 September, 11:23
    0
    Other expenses $ 38,200

    Explanation:

    The other expenses cost is a fixed cost. So it will not change based on the level wells serviced. It will not increase or decrease.

    So it will be displayed for the full amount.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Prowse Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers