Refer to Lethbridge Company. If the company incurs 9,600 labour hours for the year, what would be the estimate of total utility cost?
A) $96,960
B) $98,360
C) $113,760
D) $120,960

Question

Quizplus · Accepted Answer

According to the problem statement, Lethbridge Company has a variable cost of $11.85 per labour hour for utility. 
The estimate of the total utility cost would be calculated by multiplying the total labour hours by the variable cost per labour hour. 
So, the estimate of the total utility cost = 9,600 labour hours * $11.85 per labour hour = $113,760
Therefore, the best choice is C.