Barsness Corporation Is an Oil Well Service Company That Measures

Multiple Choice

Barsness 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 results of operations for November. When the company prepared its planning budget at the beginning of November, it assumed that 39 wells would have been serviced. However, 43 wells were actually serviced during November.The amount shown for "Other expenses" in the planning budget for November would have been closest to:

A) $34,800
B) $35,300
C) $32,016
D) $35,050