Use the following information to answer the following Questions
Commerce Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company's flexible budget revealed the following:

-If Commerce operated at 35,000 hours, its total budgeted cost would be:
A) $877,500.
B) $945,000.
C) $787,500.
D) $997,500.
E) $810,000.

Question

Use the following information to answer the following Questions
Commerce Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company's flexible budget revealed the following:

-If Commerce operated at 35,000 hours, its total budgeted cost would be:
A) $877,500. 
B) $945,000. 
C) $787,500. 
D) $997,500. 
E) $810,000.

Quizplus · Accepted Answer

The total budgeted cost is calculated by multiplying the number of hours (35,000) by the cost per hour ($25), resulting in $877,500.

Use the Following Information to Answer the Following Questions