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Gourmet Restaurants Has the Following Flexible-Budget Formula

Question 6

Multiple Choice

Gourmet Restaurants has the following flexible-budget formula:
Y = $13PH + $450,000 where PH is defined as process hours.
What is Gourmet's budgeted total cost if its process hours equal 25,000?


A) $325,000.
B) $450,000.
C) $775,000.
D) $1,225,000.
E) Answer cannot be determined from the information provided.

Correct Answer:

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