Petersheim Snow Removal's cost formula for its vehicle operating cost is $1,750 per month plus $484 per snow-day.For the month of November,the company planned for activity of 15 snow-days,but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $8,360.The vehicle operating cost in the flexible budget for November would be closest to:
A)$8,526
B)$8,409
C)$9,010
D)$8,360

Question

Quizplus · Accepted Answer

Cost = Fixed cost + Variable cost per unit F1F1F1S1F1F1F10 q
= $1,750 + $484 F1F1F1S1F1F1F10 14 = $8,526

Petersheim Snow Removal's Cost Formula for Its Vehicle Operating Cost