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Rudick Corporation is an oil well service company that measu…

Posted byAnonymous July 15, 2021December 11, 2023

Questions

Rudick Cоrpоrаtiоn is аn oil well service compаny 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   $4,500 Employee salaries and wages $47,400 $1,200 Servicing materials   $700 Other expenses $29,500   When the company prepared its planning budget at the beginning of July, it assumed that 34 wells would have been serviced. However, 36 wells were actually serviced during July.   The activity variance for revenue for July would have been closest to (PLEASE SHOW YOUR WORK BY USING THE HONORLOCK ON-SCREEN CALCULATOR):

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Tags: Accounting, Basic, qmb,

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