Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:A) $10,100

B) $4,800

C) $500

D) $5,300

Question

Evans

Business

8 November, 19:24

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:A) $10,100

B) $4,800

C) $500

D) $5,300

+2

Answers (1)

Know the Answer?

Paulina Cowan · Answer 1

Option (A) is correct.

Explanation:

Given that,

Formula for maintenance cost: Y = $5,300 + $0.60X

X is machine-hours

Planned machine time for August budget = 8,000 hours

Therefore,

Maintenance cost expected to be incurred during August:

= $5,300 + $0.60X

= $5,300 + ($0.60 * 8,000)

= $5,300 + $4,800

= $10,100

Therefore, the maintenance cost is $10,100.

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:A) $10,100B) $4,800C) $500D) $5,300

Wofril Corporation uses the cost formula Y = $5,300 + $0.60X for the maintenance cost, where X is machine-hours. The August budget is based on 8,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:A) $10,100

B) $4,800

C) $500

D) $5,300