Wadhams Snow Removal's cost formula for its vehicle operating cost is $1,900 per month plus $430 per snow-day.For the month of December,the company planned for activity of 16 snow-days,but the actual level of activity was 21 snow-days.The actual vehicle operating cost for the month was $11,470.The vehicle operating cost in the planning budget for December would be closest to:
A)$10,930
B)$11,470
C)$8,739
D)$8,780

Question

Quizplus · Accepted Answer

Cost = Fixed cost + Variable cost per unit F1F1F1S1F1F1F10 q
= $1,900 + $430 F1F1F1S1F1F1F10 16 = $8,780

Wadhams Snow Removal's Cost Formula for Its Vehicle Operating Cost