Question

Courington Detailing's cost formula for its materials and supplies is $1,880 per month plus $7 per vehicle. For the month of August, the company planned for activity of 83 vehicles, but the actual level of activity was 48 vehicles. The actual materials and supplies for the month was $2,350. The activity variance for materials and supplies in August would be closest to

Answer 1

$2,216

Step-by-step explanation:

Cost formula for flexible budget= $1880 + $7 per vehicle

Actual level of activity= 48 vehicle

Materials and supplies in the flexible budget for August= $1,880 per month + ($7 * 48 vehicles)

$1,880 + $336

= $2,216