Question

Courington Detailing's cost formula for its materials and supplies is $2,420 per month plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles, but the actual level of activity was 33 vehicles. The actual materials and supplies for the month was $2,840. The materials and supplies in the planning budget for August would be closest to: Multiple Choice $5,422 $2,840 $2,987 $2,717

Answer 1

Answer:

Budget material cost= $2,987

Explanation:

Giving the following information:

Courington Detailing's cost formula for its materials and supplies is $2,420 per month plus $9 per vehicle. For the month of August, the company planned for activity of 63 vehicles, but the actual level of activity was 33 vehicles. The actual materials and supplies for the month was $2,840.

Budget material cost= 2,420 + 9*63= $2,987