Picozzi Snow Removal's Cost Formula for Its Vehicle Operating Cost

question 140

Multiple Choice

Picozzi 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 planning budget for January would be closest to:

• A) $6,956
• B) $6,862
• C) $7,720
• D) $7,568

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