Business, 09.06.2020 20:57 SithLeo

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 cost per month Variable cost per wellRevenue $4,700Salaries and Wages $41,300 $1,000Service Materials $600Other Expenses $40,200When 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. Prepare the Planning Budget, Flexible Budget and variance analysis for Cosden Corporation.

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