Bargas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame.For the month of May,the company planned for activity of 808 frames,but the actual level of activity was 810 frames.The actual supplies cost for the month was $7,090.The supplies cost in the flexible budget for May would be closest to:
A)$7,088
B)$7,090
C)$7,106
D)$7,100

Question

Quizplus · Accepted Answer

Cost = Fixed cost + Variable cost per unit F1F1F1S1F1F1F10 q
= $2,240 + $6 F1F1F1S1F1F1F10 810 = $7,100

Bargas Framing's Cost Formula for Its Supplies Cost Is $2,240