Commerce Corporation has a high probability of operating at 30.000 activity hours during the upcoming period, and lower probabilities of operating at 20.000 hours and 40.000 hours. The company's flexible budget revealed the following: Variable costs Fixed costs 20,000 Hours $110,000 740,000 30,000 Hours $165,000 740,000 40,000 Hours $220,000 740,000 If Commerce operated at 25.000 hours, its total budgeted cost would be: $810,000 $877,500 $702,500 $887,500 $960,000