Southington snow removal's cost formula for its vehicle operating cost is $1,900 per month plus $430 per snow-day. for the month of december, the company planned for activity of 16 snow-days, but the actual level of activity was 21 snow-days. the actual vehicle operating cost for the month was $11,470. the vehicle operating cost in the planning budget for december would be closest to: a. $10,930 b. $11,470 c. $8,739 d. $8,780

D. $8,780

Explanation:

the budgeted expected 16 days of activity for the Snow removal's. The Budgeted will reflect cost for this level of activity.

so we have a budgeted cost of:

430 dollar per day x 16 days of activity = 6,880 variable cost

+ fixed cost in the magnitude of                1,900  

  total budgeted for Snow removal          8,780

The actual cost will be calclate with the actual days of activity.

answer; bootstrapping is your answer;

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