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

question 241

Multiple Choice

Sherburne Snow Removal's cost formula for its vehicle operating cost is $2,510 per month plus $371 per snow-day. For the month of March, the company planned for activity of 18 snow-days, but the actual level of activity was 17 snow-days. The actual vehicle operating cost for the month was $8,460. The vehicle operating cost in the flexible budget for March would be closest to:

• A) $8,817
• B) $9,188
• C) $8,460
• D) $8,678

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