Moung Corporation has a high probability of operating at 40,000 activity hours during the upcoming period, and lower probabilities of operating at 30,000 hours and 50,000 hours. The company's flexible budget revealed the following:. 30,000 Hours 40.000 Hours 50.000 Hours Variable costs $135,000 $180,000 $225,000 Fixed costs 720,000 720,000 720.000 Moung's flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is:.(Round calculations to 2 decimals.): Y = $4.50AH + $700,000.
Y = $180,000 + $17.50AH.
Y = $925,000.
Y = $22.00AH.
Y = $4.50AH + $23.30AH.