Bamba Corporation's cost formula for its selling and administrative expense is $47,900 per month plus $52 per unit. For the month of April, the company planned for activity of 6,000 units, but the actual level of activity was 5,960 units. The actual selling and administrative expense for the month was $364,490.
-The selling and administrative expense in the planning budget for April would be closest to:
A)$357,820
B)$359,900
C)$364,490
D)$366,936

Question

Quizplus · Accepted Answer

Cost = Fixed cost + Variable cost per unit F1F1F1S1F1F1F10 q
= $47,900 + $52 F1F1F1S1F1F1F10 6,000 = $359,900

Bamba Corporation's Cost Formula for Its Selling and Administrative Expense