Dogwood Corporation is an oil well service company that measures its output by the number of wells serviced. The company hasprovided the following fixed and variable cost estimates that it uses for budgeting purposes.RevenueEmployee salaries andwagesServicing materialsOther expensesFixed Element per Variable Element per WellMonthServicedO $133,100O $124,513O $138,100O $143,800$$ 5,40042,500 $40,500$1,200700When the company prepared its planning budget at the beginning of May, it assumed that 29 wells would have been serviced.However, 32 wells were actually serviced during June.The total expenses in the flexible budget for June would have been closest to:

Flexible budget is a dynamic budget.It shows estimated costs and revenues at different levels of…

Dogwood 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. Revenue Employee salaries and wages Servicing materials Other expenses Fixed Element per Variable Element per Well Month Serviced $ 42,500 40,500 $ 5,400 $ 1,200 $ 700 When the company prepared its planning budget at the beginning of May, it assumed that 29 wells would have been serviced. However, 32 wells were actually serviced during June. The total expenses in the flexible budget for June would have been closest to:

Dogwood 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. Revenue Employee salaries and wages Servicing materials Other expenses Fixed Element per Variable Element per Well Month Serviced $ 42,500 40,500 $ 5,400 $ 1,200 $ 700 When the company prepared its planning budget at the beginning of May, it assumed that 29 wells would have been serviced. However, 32 wells were actually serviced during June. The total expenses in the flexible budget for June would have been closest to:

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 7P: Preparing a performance report Use the flexible budget prepared in P7-6 for the 31,000-unit level...

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