Reference no: EM132470207
Fields Corporation has a high probability of operating at 46,000 activity hours during the upcoming period, and lower probabilities of operating at 36,000 hours and 56,000 hours.
The company's flexible budget revealed the following:
36,000 Hours 46,000 Hours 56,000 Hours
Variable costs $270,000 $345,000 $420,000
Fixed costs $960,000 $960,000 $960,000
Question 1: Determine If Fields operated at 41,000 activity hours, its total budgeted cost would be:
option 1: 1,380,000
option 2: 1,444,500
option 3: 1,825,500
option 4: 1,062,000
option 5: 1,267,500
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