Lethbridge Company constructed the following formula for monthly utility cost.
Total utility cost = $1,400 + ($10.10 × labour hours)
Assume that 800 labour hours are budgeted for the month of May.
-Refer to the Figure.If Lethbridge 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

To find the estimate of total utility cost for 9,600 labour hours, we can use the formula: 
Total utility cost = $1,400 + ($10.10 × labour hours) 
Substituting 9,600 for labour hours: 
Total utility cost = $1,400 + ($10.10 × 9,600) 
Total utility cost = $1,400 + $96,960 
Total utility cost = $98,360 
Therefore, the best choice is (C), $113,760.

Lethbridge Company Constructed the Following Formula for Monthly Utility Cost