Ruozzo Corporation is a service company that measures its output by the number of customers...
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Accounting
Ruozzo Corporation is a service company that measures its output by the number of customers served. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results of operations for July. Fixed Element per Month Variable Element per Customer Served Actual Total for July Revenue $ 4,500 $ 100,000 Employee salaries and wages $ 43,100 $ 900 $ 63,300 Travel expenses $ 500 $ 11,500 Other expenses $ 36,900 $ 37,900 When the company prepared its planning budget at the beginning of July, it assumed that 27 customers would have been served. However, 22 customers were actually served during July. The Employee salaries and wages in the flexible budget for July would have been closest to:
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