Jumpst Corporation uses the cost formula Y = $3,600 + $0.30X for the maintenance cost in Department B,where X is machine-hours.The August budget is based on 20,000 hours of planned machine time.Maintenance cost expected to be incurred during August is:
A)$3,600
B)$6,000
C)$6,300
D)$9,600

Question

Quizplus · Accepted Answer

Y = $3,600 + $0.30 per unit F1F1F1S1F1F1F10 X
= $3,600 + $0.30 per unit F1F1F1S1F1F1F10 20,000 hours
= $3,600 + $6,000
= $9,600

Jumpst Corporation Uses the Cost Formula Y = $3,600