Kaaihue Detailing's cost formula for its materials and supplies is $2,750 per month plus $17 per vehicle. For the month of April, the company planned for activity of 95 vehicles, but the actual level of activity was 135 vehicles. The actual materials and supplies for the month was $4,850.
-The materials and supplies in the flexible budget for April would be closest to:
A) $6,203
B) $4,850
C) $4,365
D) $5,045

Question

Quizplus · Accepted Answer

The flexible budget for materials and supplies is calculated as $2,750 + ($17 * 135 vehicles) = $5,045.

Kaaihue Detailing's Cost Formula for Its Materials and Supplies Is