- a Ch. 9 - Krispy Kreme is preparing its budget for the month of January. Using a basic cost function of Y = a + bx, Krispy Kreme has estimated that the cost for raw materials is $17,000 per month plus $0.05 per donut. For January 2022, Krispy Kreme forecasted sales of 12,000 donuts, but the actual level of activity was 10,000 donuts. The actual materials and supplies for the month of January was $16.750. The raw materials cost in the planning budget for January would be closest to