Use the following information to answer the following Questions
Seven Falls Cuisines has the following flexible-budget formula:
Y = $13PH + $450,000 where PH is defined as process hours.

-Which of the following statements is (are) true?
A) Seven Falls has $450,000 of fixed costs.
B) Each additional hour of process time is expected to cost Seven Falls $13.
C) Y would equal the amount shown as "total cost" in the company's flexible budget.
D) Both Seven Falls has $450,000 of fixed costs and each additional hour of process time is expected to cost Seven Falls $13.
E) All of the answers are correct.

Question

Use the following information to answer the following Questions
Seven Falls Cuisines has the following flexible-budget formula: 
Y = $13PH + $450,000 where PH is defined as process hours.

-Which of the following statements is (are) true?
A) Seven Falls has $450,000 of fixed costs.
B) Each additional hour of process time is expected to cost Seven Falls $13.
C) Y would equal the amount shown as "total cost" in the company's flexible budget.
D) Both Seven Falls has $450,000 of fixed costs and each additional hour of process time is expected to cost Seven Falls $13.
E) All of the answers are correct.

Quizplus · Accepted Answer

The formula Y = $13PH + $450,000 indicates that $450,000 is the fixed cost component (A is true), each additional process hour costs $13 (B is true), and Y represents the total cost in the flexible budget (C is true), making all statements correct.

Use the Following Information to Answer the Following Questions