Hamiter Framing's cost formula for its supplies cost is $1,640 per month plus $9 per frame. For the month of August, the company planned for activity of 572 frames, but the actual level of activity was 573 frames. The actual supplies cost for the month was $7,080.The supplies cost in the planning budget for August would be closest to:_________
A) $7,080
B) $7,068
C) $6,788
D) $6,797

Respuesta :

Answer: C) $6,788

Explanation:

The company planned for an activity of 572 frames in August. The cost of these frames are a flat cost of $1,640 per month and an added $9 for each frame.

The cost in August is therefore;

= 1,640 + ( 572 * 9)

= 1,640 + ‭5,148‬

= $‭6,788‬