Commerce Corporation has a high probability of operating at 42,000 activity hours during the upcoming period, and lower probabilities of operating at 32,000 hours and 52,000 hours. The company's flexible budget revealed the following:

	32,000 Hours				42,000 Hours				52,000 Hours
Variable costs	$	176,000			$	231,000			$	286,000
Fixed costs		920,000				920,000				920,000

Commerces flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is: (Round intermediate calculations to 2 decimal places.)

Multiple Choice

• Y = $5.50AH + $920,000.

• Y = $1,206,000.

• Y = $231,000 + $21.90AH.

• Y = $5.50AH + $28.80AH.

• Y = $27.40AH.