Figure 3-4

Multiple Choice

Figure 3-4. Botana Company constructed the following formula for monthly utility cost.
Total utility cost = $1,200 + ($8.10 ´ labor hours)
Assume that 775 labor hours are budgeted for the month of April.
Refer to Figure 3-4.If Botana Company incurs 9,600 labor hours for the year,what would be the estimate of total utility cost?

A) $76,560
B) $78,960
C) $92,160
D) none of these are correct