Howard Inc

Multiple Choice

Howard Inc. provides temporary clerical services to local businesses. The company has determined that total costs for a given month can be predicted by using the following formula: Total costs = $2,500 + $20x
Where "x" equals total direct labor hours for the month. If total direct labor hours for June are expected to be 600, what are total costs expected to be?

A) $ 9,500
B) $14,500
C) $12,000
D) $ 2,520