Question

Detailing's cost formula for its materials and supplies is $2,060 per month plus $12 per vehicle. For the month of August, the company planned for activity of 86 vehicles, but the actual level of activity was 46 vehicles. The actual materials and supplies for the month was $2,350. The materials and supplies in the planning budget for August would be closest to:

Answer 1

Answer:

$3092

Explanation:

The planning budget is the original budget set aside for the production of a planned quantity of goods and services in a company it can also be refered to as the fixed budget of a company

detailed cost formula for materials and supplies = $2060

planned quantity of goods = 86

extra cost per vehicle = $12

Total extra cost for 86 vehicles = 86 * $12 = $1032

hence the materials and supplies in the planning budget would be

= total extra cost + Detailed cost formula for materials and supplies

= $1032 + $2060

= $3092

Answer 2

Answer:

Planning budget amount = $3,052.00

Explanation:

The planning budget is als0 known as the fixed budget . It is the budget prepared for the original level of activity intended or  planned for. As it's name implies, it is used for  planning purpose.

For the month of August, the planning budget

= $2060 + ($12 × 86)

=  $3,052.00

Planning budget amount = $3,052.00