Ofarrell snow removals cost formula for its vehicle, Financial Accounting

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Ofarrell snow removals cost formula for its vehicle

Ofarrell Snow Removal's cost formula for its vehicle operating cost is $1,840 per month plus $377 per snow-day. For the month of November, the company planned for activity of 14 snow-days, but the actual level of activity was 19 snow-days. The actual vehicle operating cost for the month was $9,280. The vehicle operating cost in the flexible budget for November would be closest to:

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Financial Accounting: Ofarrell snow removals cost formula for its vehicle

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