Prowse Corporation Is an Oil Well Service Company That Measures

Multiple Choice

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

A) $85,800
B) $84,000
C) $74,000
D) $80,800