1. Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus $20 per boat. For the month of June, the company planned for activity of 85 boats, but the actual level of activity was 125 boats. The actual cleaning equipment and supplies for the month was $4,380. The cleaning equipment and supplies in the planning budget for June would be closest to: A. B. C. D. $3,650 $4,450 $2,978 $4,380

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter7: Allocating Costs Of Support Departments And Joint Products
Section: Chapter Questions
Problem 1CE: The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include:...
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QUESTION 7
1. Mcquain Boat Wash's cost formula for its
cleaning equipment and supplies is
$1,950 per month plus $20 per boat. For
the month of June, the company planned
for activity of 85 boats, but the actual level
of activity was 125 boats. The actual
cleaning equipment and supplies for the
month was $4,380.
The cleaning equipment and supplies in
the planning budget for June would be
closest to:
A.
B.
C.
D.
$3,650
$4,450
$2,978
$4,380
Transcribed Image Text:QUESTION 7 1. Mcquain Boat Wash's cost formula for its cleaning equipment and supplies is $1,950 per month plus $20 per boat. For the month of June, the company planned for activity of 85 boats, but the actual level of activity was 125 boats. The actual cleaning equipment and supplies for the month was $4,380. The cleaning equipment and supplies in the planning budget for June would be closest to: A. B. C. D. $3,650 $4,450 $2,978 $4,380
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