Ask Question
8 April, 05:28

Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 * labor hours) Assume that 775 labor hours are budgeted for the month of April. Calculate the total variable utility cost for the month of April. a.$5,077.50 b.$7,477.50 c.$1,200.00 d.$6,277.50

+5
Answers (1)
  1. 8 April, 06:08
    0
    The answer is: D) $6,277.50

    Explanation:

    Total costs are made up of fixed costs + variable costs.

    Fixed costs are costs that don't change with an increase or decrease in the production levels (Botana's fixed costs are $1,200).

    Variable costs are costs that change with an increase or decrease in the production levels (Botana's variable costs = $8.10 per labor hour x 775 labor hours = $6,277.50)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 * labor hours) Assume that ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers