Determine the materials and supplies in planning budget


Response to the following problem:

Geneva Detailing's cost formula for its materials and supplies is $2,230 per month plus $1 per vehicle. For the month of November, the company planned for activity of 75 vehicles, but the actual level of activity was 25 vehicles. The actual materials and supplies for the month was $2,160.

The materials and supplies in the planning budget for November would be closest to:

$2,255

$2,160

$2,305

$6,480.

PLEASE SHOW CALCULATIONS ON HOW YOU ARRIVED AT YOUR ANSWER.

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Financial Accounting: Determine the materials and supplies in planning budget
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