Blackwelder Snow Removal’s cost formula for its vehicle operating cost is $1,240 per month plus $348 per snow-day. For the month of December, the company planned for activity of 12 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $6,330. The vehicle operating cost in the planning budget for December would be closest to:
a. $5,426
b. $6,112
Selected: c. $5,416 This answer is correct.
d. $6,330
Correct! $1,240 plus $348 times 12 totals $5,416.