Q.

ABC ltd. uses the following flexible budget formula to annual maintenance cost:
Total cost = Rs. 6720 + Rs. 0.64 for machine hour
The current month's budget is based on 20,000 hours of planned machine time. The maintenance cost included in this flexible budget for the current month is

A. rs. 12,800
B. rs. 13,360
C. rs. 12,240
D. rs. 13,600
Answer» B. rs. 13,360
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