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Nerve Pain Innovations Anticipated That 84,000 Process Hours Would Be

Question 14

Multiple Choice

Nerve Pain Innovations 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 Nerve Pain'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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