Milot Corporation Is an Oil Well Service Company That Measures

Multiple Choice

Milot 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 April. When the company prepared its planning budget at the beginning of April, it assumed that 32 wells would have been serviced. However, 29 wells were actually serviced during April.The "Servicing materials" in the flexible budget for April would have been closest to:

A) $16,000
B) $16,662
C) $14,500
D) $15,100