Divine Intervention Company Uses Activity-Based Costing

Multiple Choice

Divine Intervention Company uses activity-based costing.The company is trying to estimate the costs of the processing activity in the factory.The company has developed the following flexible budget formula: Y = $10.50X + $13,000
Where: Y = Total processing cost per quarter and X = Number of machine hours
What are the expected total processing costs if 10,000 machine hours are expected next quarter?

A) $13,000
B) $105,000
C) $113,000
D) $118,000