Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.
-The materials and supplies in the planning budget for November would be closest to:
A)$2,726
B)$2,406
C)$4,317
D)$2,440

Question

Quizplus · Accepted Answer

Cost = Fixed cost per unit + Variable cost per unit F1F1F1S1F1F1F10 q
= $1,990 + $8 F1F1F1S1F1F1F10 92 = $2,726

Cadavieco Detailing's Cost Formula for Its Materials and Supplies Is