Question

Rice Corporation uses the cost formula Y=$4800 + $0.40X for the maintenance cost, where X is machine hours. The August budget is based on 9,000 hours of planned machine time. What is the maintenance cost expected to be incurred during August? (A) $4,800; (B) $8,400; (C) $3,600: (D) $1,200

Answer 1

correct answer is option B

Explanation:

rice corporation cost formula for maintenance :

Y = $4800 + $0.40 X

where, X is machine hours

So,

in august budget hours given is = 9000.

Now, substituting the value of hours in the given formula,

we get,

Y = $4800 + $0.40*(9000)

Y = $4800 + $3600

Y = $8400

hence, the maintenance incurred during August month is $8400

So, the correct answer is option B