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Young 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
Young 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 | $126,000 | $161,000 | $196,000 |
Fixed costs | 820,000 | 820,000 | 820,000 |
rev: 10_29_2012
10.
Young's flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is (Round calculations to 2 decimals.):
Y = $21.30AH. | |
Y = $3.50AH + $22.80AH. | |
Y = $3.50AH + $820,000. | |
Y = $1,016,000. | |
Y = $161,000 + $17.80AH. |
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