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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)
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) $ 4.00q
Utilities (mixed) $150 + $0.75q
The companys planned level of activity was 2,000 hours and its actual level of activity was 1,900 hours. How much utilities expense would be included in the flexible budget?
- $1,500
- $1,675
- $1,575
- $1,650
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