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13 March, 21:55

Dallas Snow Removal's cost formula for its vehicle operating cost is $2,060 per month plus $306 per snow-day. For the month of January, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $7,720. The vehicle operating cost in the static or planning budget for January would be closest to: gs

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  1. 14 March, 00:13
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    The vehicle operating cost in the planning budget will be $6,956.

    Explanation:

    The vehicle operating cost per month is $2,060.

    While, the operating cost per month is $306.

    The activity is planned for 16 snow days.

    The vehicle operating cost in the planning budget

    =The vehicle operating cost per month + (The vehicle operating cost per month*number of planned activity days)

    =$2,060 + ($306*16)

    =$2060+$4,896

    =$6,956
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