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.

If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?
A) $76,560
B) $78,960
C) $92,160
D) none of these are correct

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.
 
If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?
A) $76,560
B) $78,960
C) $92,160
D) none of these are correct

Quizplus · Accepted Answer

SUPPORTING CALCULATIONS: ($1,200 × 12) + ($8.10 × 9,600)

Botana Company Constructed the Following Formula for Monthly Utility Cost