Detailing's cost formula for its materials and supplies is $2,060 per month plus $12 per vehicle. For the month of August, the company planned for activity of 86 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,350. The materials and supplies in the planning budget for August would be closest to:

Question

Business

Maxwell Black

28 July, 16:51

Detailing's cost formula for its materials and supplies is $2,060 per month plus $12 per vehicle. For the month of August, the company planned for activity of 86 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,350. The materials and supplies in the planning budget for August would be closest to:

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Answers (1)

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Marquise Pierce · Answer 1

Planning budget amount = $3,052.00

Explanation:

The planning budget is als0 known as the fixed budget. It is the budget prepared for the original level of activity intended or planned for. As it's name implies, it is used for planning purpose.

For the month of August, the planning budget

= $2060 + ($12 * 86)

= $3,052.00

Planning budget amount = $3,052.00