Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked):

Rent (fixed)		$3,000
Supplies (variable)		$4.00	q
Utilities (mixed)		$150 + $0.75	q

The companys planned level of activity was 2,080 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget?

rev: 06_25_2020_QC_CS-208650

Multiple Choice

• $7,720

• $8,020

• $8,220

• $8,320