Gulland Rock Ltd uses the following flexible budget formula for monthly repair cost: total cost = $1,500 + $0.40 per machine hour. The annual operating budget calls for 25,000 hours of planned machine time. Budgeted repair cost is:
A) $11,500
B) $14,700
C) $22,400
D) $22,000

Question

Quizplus · Accepted Answer

Total repair cost = $1,500 + ($0.40 x 25,000 hours) = $11,500

Gulland Rock Ltd Uses the Following Flexible Budget Formula for Monthly