Prowse Corporation is an oil well service company that measures its output by the number...
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Accounting
Prowse 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 $4,000 Employee salaries and wages $43,800 $1,000 Servicing materials $ 600 Other expenses $38,200 A total of 42 wells were actually serviced during October. The revenue in the company's flexible budget
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