Del's Diner Anticipated That 84,000 Process Hours Would Be Worked

question 14

Multiple Choice

Del's Diner anticipated that 84,000 process hours would be worked during an upcoming accounting period when,in fact,90,000 hours were actually worked.One of the company's cost functions is expressed as follows:
Y = $16PH + $640,000 where PH is defined as process hours
What is Del's flexible budget for the preceding cost function?

• A)$1,280,000
• B)$2,080,000
• C)$1,984,000
• D)$1,221,000
• E)$2,112,000

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Definitions:

Marketable Securities

Financial instruments that can be easily converted to cash, such as stocks, bonds, and Treasury bills.

Earnings Per Share

A metric used to measure a company’s profitability, calculated as the company's net profit divided by the number of outstanding shares.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.

Common Shares Outstanding

The total number of shares of common stock that are issued and actively held by shareholders, excluding treasury shares.