Question
Brutus Buckeye (BB) anticipated that 93,000 process hours would be worked during an upcoming accounting period when, in fact, 101,000 hours were actually worked. One
Brutus Buckeye (BB) anticipated that 93,000 process hours would be worked during an upcoming accounting period when, in fact, 101,000 hours were actually worked. One of the company's overhead cost formula is expressed as follows:
Y = $18PH + $730,000 where PH is defined as process hours.
What budgeted dollar amount would appear in BB's static budget and flexible budget for the preceding cost formula?
| Static | Flexible |
A. | $2,404,000 | $2,404,000 |
B. | $2,404,000 | $2,548,000 |
C. | $2,548,000 | $2,404,000 |
D. | $2,548,000 | $2,548,000 |
Group of answer choices
Choice A
Choice D
Choice C
Choice B
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