Entler Framing's cost formula for its supplies cost is $2,250 per month plus $16 per frame. For the month of June, the company planned for activity of 502 frames, but the actual level of activity was 497 frames. The actual supplies cost for the month was $10,580. The supplies cost in the planning budget for June would be closest to:
A) $10,580
B) $10,282
C) $10,686
D) $10,202

Question

Quizplus · Accepted Answer

The planned supplies cost is $2,250 + ($16 x 502) = $10,282.

Entler Framing's Cost Formula for Its Supplies Cost Is $2,250