Jerome Copper Company Budgeted 126,000 Process Hours for the Month

Multiple Choice

Jerome Copper Company budgeted 126,000 process hours for the month of October when one of the company's cost functions was budgeted to be $2,976,000.The process hours actually worked during October were 135,000. Jerome Copper Company experienced a cost variance of $40,000 unfavorable related to this cost function.If the company's cost function includes a $16 per process hour rate, what is the formula used by Jerome Copper Company to derive its flexible budget?

A) Y = $16(Total process hours) + $920,000
B) Y = $16(Total process hours) + $960,000
C) Y = $16(Total process hours) + $816,000
D) Y = $16(Total process hours) + $856,000
E) Y = $16(Total process hours) + $2,976,000