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Actual Maintenance Costs for a Movie Theatre for the Months

Question 45

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Actual maintenance costs for a movie theatre for the months of July and August are as follows:  July  August  Maintenance hours worked 1,5501,660 Hourly wages and benefits $18,600$19,920 Cleaning supplies 3,1003,320 Equipment lease costs 2,0002,000 Total maintenance costs $23,700$25,240\begin{array} { | l | l | l | } \hline & \text { July } & \text { August } \\\hline \text { Maintenance hours worked } & \underline { 1,550 } & 1,660 \\\hline & & \\\hline \text { Hourly wages and benefits } & \$ 18,600 & \$ 19,920 \\\hline \text { Cleaning supplies } & 3,100 & 3,320 \\\hline \text { Equipment lease costs } & \underline { 2,000 } & 2,000 \\\hline \text { Total maintenance costs } & \underline { \underline { \$ 23,700 } } & \underline { \underline { \underline { \$ 25,240 } } } \\\hline\end{array} The manager is checking to see that enough maintenance hours are scheduled for the month of September. The total budget for maintenance costs for September is $26,990 and experience has shown that maintenance cost behaviour is quite consistent from month to month. How many hours should be scheduled for September maintenance?


A) 1,795 hours.
B) 1,775 hours.
C) 1,765 hours.
D) 1,785 hours.

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