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 Element per Month Variable Element per Well Serviced
Revenue $ 4,700
Employee salaries and wages $ 41,300 $ 1,000
Servicing materials $ 600
Other expenses $ 40,200
When 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.
The total expenses in the flexible budget for May would have been closest to:

a.$133,100
b.$124,513
c.$127,900
d.$131,100