Cosden 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 Month Variable Element per Well Serviced
Revenue $ 4,700
Employee salaries and wages $ 41,300 $ 1,000
Servicing materials $ 600
Other expenses $ 40,200

When the company prepared its planning budget at the beginning of May, it assumed that 29 wells would have been serviced. However, 31 wells were actually serviced during May. The total expenses in the flexible budget for May would have been closest to:

Total expense    $82,996.77

Explanation:

The total expenses will be calculated as follows:

                                                                                     $

Variable cost                                                                

Employees Salaries and Wages  (29/31× 1,000)  =    935.48

Servicing material = (29/31 × $600)                     =      561.29

Fixed cost (413,300 +40200)                                       81,500

Total expense                                                              82,996.77

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.