Clarmont Corporation is an oil well service company that measures its output by the number of wells serviced. The compan

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Clarmont Corporation Is An Oil Well Service Company That Measures Its Output By The Number Of Wells Serviced The Compan 1 (50.18 KiB) Viewed 54 times

Clarmont 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 per Variable Element per Well Month Serviced Revenue $9,000 Employee salaries and wages $112,800 $1,800 Servicing materials $1,400 Other expenses $70,800 When the company prepared its planning budget at the beginning of December, it assumed that 34 wells would have been serviced. However, 32 wells were actually serviced during December. The "Employee salaries and wages" in the flexible budget for December would have been closest to: None of the above $169,200 $85.200 $174,000 O $170.400