Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,460 per month plus $49 per boat. For the month of April, the company planned for activity of 58 boats, but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the month was $3,470.The cleaning equipment and supplies in the flexible budget for April would be closest to:

Question

Quizplus · Accepted Answer

The flexible budget for cleaning equipment and supplies is calculated based on the actual activity level. The cost formula is $2,460 fixed cost per month plus $49 per boat. For 18 boats, the calculation is $2,460 + ($49 * 18) = $2,460 + $882 = $3,342.

Pratte Boat Wash's Cost Formula for Its Cleaning Equipment and Supplies