Doors and Keys, Inc., provides custom creation of door locks for expensive homes. The company has recently become concerned about its ability to plan and control costs. Howard Lockwood, the company’s founder, believes that he can summarize the company’s monthly cost with a simple formula that appears as “Cost = $12,800 + $25.00 per labor hour.”

Required
If Doors and Keys’ employees work 850 hours in a single month, calculate an estimate of the company’s total costs.