Faulkner Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes. Fixed Element per Month Variable

Faulkner Corporation is a shipping container refurbishment company that measures its output by the
number of containers refurbished. The company has provided the following fixed and variable cost
estimates that it uses for budgeting purposes.
Fixed Element per Month
Variable Element per Container Refurbished
Revenue
$
5,400
Employee salaries and wages
$
46,300
$
1,200
Refurbishing materials
$
700
Other expenses
$
32,400
When the company prepared its planning budget at the beginning of August, it assumed that 23
containers would have been refurbished. However, 26 containers were actually refurbished during
August. The amount shown for total expenses in the planning budget for August would have been:
a. $111,904.
b. $126,500.
c. $122,400.
d. $128,100.

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