Courington Detailing's cost formula for its materials and supplies is $2,010 per month plus $6 per vehicle. For the month of August, the company planned for activity of 96 vehicles, but the actual level of activity was 56 vehicles. The actual materials and supplies for the month was $2,420.The materials and supplies in the flexible budget for August would be closest to:
A) $2,420
B) $1,481
C) $2,586
D) $2,346

Question

Quizplus · Accepted Answer

The flexible budget for materials and supplies would be calculated based on the actual activity level of 56 vehicles: $2,010 + ($6 * 56) = $2,346.

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