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

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 Answer of 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.

Commerce Corporation Has a High Probability of Operating at 40,000