Thilking Midwifery's cost formula for its wages and salaries is $2,140 per month plus $454 per birth. For the month of August, the company planned for activity of 102 births, but the actual level of activity was 100 births. The actual wages and salaries for the month was $47,660. The wages and salaries in the flexible budget for August would be closest to:
A) $47,540
B) $48,448
C) $47,498
D) $47,660

Question

Quizplus · Accepted Answer

The flexible budget for wages and salaries is calculated based on the actual level of activity. With a fixed cost of $2,140 per month and a variable cost of $454 per birth, for 100 births, the calculation is $2,140 + ($454 * 100) = $2,140 + $45,400 = $47,540.

Thilking Midwifery's Cost Formula for Its Wages and Salaries Is