Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 × labor hours)
Assume that 775 labor hours are budgeted for the month of April.

Calculate the total variable utility cost for the month of April.
A) $1,200.00
B) $7,477.50
C) $6,277.50
D) $5,077.50

Question

Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 × labor hours)
Assume that 775 labor hours are budgeted for the month of April.
 
Calculate the total variable utility cost for the month of April.
A) $1,200.00
B) $7,477.50
C) $6,277.50
D) $5,077.50

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS: ($8.10 × 775)

Botana Company Constructed the Following Formula for Monthly Utility Cost