Final answer:
The planning budget for Hamiter Framing's supplies cost for August, based on the anticipated activity level of 572 frames, is calculated by adding the fixed cost to the product of the variable cost per frame and the planned number of frames. This results in a total planned cost of $6,788 for supplies.
Step-by-step explanation:
The student is asking about the calculation of a planning budget cost for Hamiter Framing's supplies given a cost formula for the supplies. The cost formula provided is a fixed cost of $1,640 per month plus a variable cost of $9 per frame. For the planning budget of August, the company anticipated an activity level of 572 frames. To calculate the planned supplies cost, we apply the cost formula: $1,640 (fixed cost) + ($9 × 572 frames) for the variable cost.
Calculating the planned supplies cost:
Fixed cost: $1,640
Variable cost for 572 frames: $9/frame × 572 frames = $5,148
Total planned supplies cost: $1,640 + $5,148 = $6,788
Therefore, the supplies cost in the planning budget for August would be closest to $6,788. It's important to note that this figure is based on the planned activity level, not the actual activity, which in this case was one frame more. As the question requests the plan not the actual cost, the actual cost and activity level are not part of the calculation for this answer.