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

question 100

Multiple Choice

Larance Detailing's cost formula for its materials and supplies is $2,230 per month plus $1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but the actual level of activity was 25 vehicles. The actual materials and supplies for the month was $2,160. The materials and supplies in the flexible budget for November would be closest to:

• A)$2,305
• B)$768
• C)$2,255
• D)$2,160

---

Definitions:

Strategy

A plan of action designed to achieve a long-term or overall aim.

Operational Effectiveness

Refers to an organization's ability to perform activities more effectively and efficiently than its competitors, leading to superior performance.

Supply Chain

The entire system of production, handling, and distribution of goods from raw materials to final products to the consumer.

Production Time

The period required to manufacture or produce goods, from the start of the process to its completion.