Asked by Faira Fischer on May 15, 2024
Verified
Cardero Midwifery's cost formula for its wages and salaries is $2,280 per month plus $348 per birth. For the month of August, the company planned for activity of 118 births, but the actual level of activity was 116 births. The actual wages and salaries for the month was $44,120. The wages and salaries in the planning budget for August would be closest to:
A) $44,881
B) $44,120
C) $43,344
D) $42,648
Cost Formula
An equation used to determine the total cost of production, incorporating variable and fixed costs.
Wages and Salaries
Compensation paid to employees for their services, which can be based on time spent or tasks performed.
August
The eighth month of the year in the Gregorian calendar.
- Assess intended financial outlays by engaging with multiple cost calculations and activity gauges.
Verified Answer
BS
Baljinder SinghMay 20, 2024
Final Answer :
C
Explanation :
Using the cost formula given, we can calculate the total wages and salaries budgeted for the planned level of activity:
$2,280 + ($348 per birth × 118 births) = $43,344
Since the actual level of activity was slightly lower than planned (116 instead of 118), we would expect the actual wages and salaries to be slightly lower than the budgeted amount. The closest option to the calculated budgeted amount is therefore C: $43,344.
$2,280 + ($348 per birth × 118 births) = $43,344
Since the actual level of activity was slightly lower than planned (116 instead of 118), we would expect the actual wages and salaries to be slightly lower than the budgeted amount. The closest option to the calculated budgeted amount is therefore C: $43,344.
Learning Objectives
- Assess intended financial outlays by engaging with multiple cost calculations and activity gauges.
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