Sammy Three Fingers Diaper Service cost formula for its supplies cost is $2,500 per month plus $10 per diaper change

Accounting Nov 30, 2020

Sammy Three Fingers Diaper Service cost formula for its supplies cost is $2,500 per month plus $10 per diaper change. For the month of September, the company planned for activity of 600 diaper changes, but the actual level of activity was 666 changes. The actual supplies cost for the month was $9,980. The supplies cost in the planning budget for September would be closest to: Actual Cost Flex Budget Planning Budget
$10,010 $9,160 $8,500 $9,980

Expert Solution

Correct option is "C" -8500

Supplies cost in planning budget (600 diapers) = Budgeted cost = 2500 per month + $ 10 per diaper change

= 2500+ [10 * 600]

= 2500 +6000

= 8500

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