If Young operated at 35,000 activity hours, its total budgeted cost would be: $8

Question

If Young operated at 35,000 activity hours, its total budgeted cost would be: $877,500. $945,000. $787,500. $997,500. $810,000.

If Young operated at 35,000 activity hours, its total budgeted cost would be: $877,500. $945,000. $787,500. $997,500. $810,000.

If Young operated at 35,000 activity hours, its total budgeted cost would be: $877,500. $945,000. $787,500. $997,500. $810,000.

$877,500. $945,000. $787,500. $997,500. $810,000.

$877,500. $945,000. $787,500. $997,500. $810,000.

Young Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company's flexible budget revealed the following:

Explanation / Answer

Variable cost per hour = (180000 - 135000)/(40000 - 30000) = 45000/10000 = 4.5 per hour

Hence, total budgeted cost at 35000 activity hours = 35000 hrs x 4.5 ) + 720000 = $877500

Option a is correct

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