The Total Traceable Costs of the Account Billing Activity Centre

Multiple Choice

The total traceable costs of the account billing activity centre is $245,000. Cost behaviour analysis indicates that fixed costs are $75,000. Activity analysis indicates that the cost driver for account billing activity is the number of lines printed, and the total lines printed is 2,500,000.
-What would be the total flexible budget if the number of lines increased to 2,600,000?

A) $176,800
B) $245,000
C) $251,800
D) Cannot be determined