Divine Intervention Company Uses Activity-Based Costing

question 90

Multiple Choice

Divine Intervention Company uses activity-based costing.The company is trying to estimate the costs of the processing activity in the factory.The company has developed the following flexible budget formula: Y = $10.50X + $13,000
Where: Y = Total processing cost per quarter and X = Number of machine hours
What are the expected total processing costs if 10,000 machine hours are expected next quarter?

• A)$13,000
• B)$105,000
• C)$113,000
• D)$118,000

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Definitions:

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