Gourmet Restaurants Has the Following Flexible-Budget Formula

Multiple Choice

Gourmet Restaurants has the following flexible-budget formula:
Y = $13PH + $450,000 where PH is defined as process hours.
Which of the following statements is (are) true?

A) Gourmet has $450,000 of fixed costs.
B) Each additional hour of process time is expected to cost Gourmet $13.
C) Y would equal the amount shown as "total cost" in the company's flexible budget.
D) Both Gourmet has $450,000 of fixed costs and each additional hour of process time is expected to cost Gourmet $13.
E) All of the other answers are correct.