Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas,oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles permonth.Required:a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimalplaces.)Answer is complete but not entirely correct.Total cost1,070.49b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?YesO No

a. The expected cost for the month of April is $1,042.41 Explanation: The total cost per month for…

Answered: - How much cost would Larry expec…

Business

Accounting

- How much cost would Larry expec laces.) Answer is complete but not ent Total cost 1,070.49

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Exercise 12-11 (Algo) Estimating costs based on behavior patterns LO 3
Larry estimates that the costs of insurance, license, and depreciation to operate his car total $450 per month and that the gas,
oil, and maintenance costs are 39 cents per mile. Larry also estimates that, on average, he drives his car 2,000 miles per
month.
Required:
a. How much cost would Larry expect to incur during April if he drove the car 1,519 miles? (Round your answer to 2 decimal
places.)
Answer is complete but not entirely correct.
Total cost
1,070.49
b. Would it be meaningful for Larry to calculate an estimated average cost per mile for a typical 2,000-mile month?
Yes
O No

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