Courington Detailing's cost formula for its materials and supplies is $1,890 per month plus $8 per vehicle. For the month of August, the company planned for activity of 84 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,450. The materials and supplies in the flexible budget for August would be closest to: Multiple Choice $2,450 $1,417 $2,562 $2,282

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 16E: Determining Budgeted Overhead The overhead application rate for a company is 10 per unit, made up of...
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Courington Detailing's cost formula for its materials and supplies is $1,890 per month plus $8 per vehicle. For the month of August, the company planned
for activity of 84 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,450.
The materials and supplies in the flexible budget for August would be closest to:
Multiple Choice
$2,450
$1,417
$2,562
$2,282
Transcribed Image Text:Courington Detailing's cost formula for its materials and supplies is $1,890 per month plus $8 per vehicle. For the month of August, the company planned for activity of 84 vehicles, but the actual level of activity was 49 vehicles. The actual materials and supplies for the month was $2,450. The materials and supplies in the flexible budget for August would be closest to: Multiple Choice $2,450 $1,417 $2,562 $2,282
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