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.