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

question 76

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 (Y) 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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