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Fields Corporation has a high probability of operating at 46,000 activity hours during the upcoming period, and lower probabilities of operating at 36,000 hours and
Fields Corporation has a high probability of operating at 46,000 activity hours during the upcoming period, and lower probabilities of operating at 36,000 hours and 56,000 hours. The company's flexible budget revealed the following:
36,000 Hours 46,000 Hours 56,000 Hours
Variable costs $270,000 $345,000 $420,000
Fixed costs $960,000 $960,000 $960,000
If Fields operated at 41,000 activity hours, its total budgeted cost would be:
1,380,000
1,444,500
1,825,500
1,062,000
1,267,500
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