Sherburne Snow Removal's cost formula for its vehicle operating cost is $2,510 per month plus $371 per snow-day. For the month of March, the company planned for activity of 18 snow-days, but the actual level of activity was 17 snow-days. The actual vehicle operating cost for the month was $8,460. The vehicle operating cost in the flexible budget for March would be closest to:
A) $8,817
B) $9,188
C) $8,460
D) $8,678

Question

Quizplus · Accepted Answer

The flexible budget for March would be $2,510 + (18 x $371) = $8,817.

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