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Young Corporation has a high probability of operating at 40,000 activity hours during the upcoming...

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Accounting

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Young 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: Variable costs Fixed costs 30.000 Hours $135,000 720,000 40,000 Hours $180,000 720,000 50.000 Hours S225.000 720.000 Young's flexible-budget formula, where Y is defined as total cost and AH represents activity hours, is: Y = $4.50AH + $24AH. Y = $4.50AH + $720,000. Y = $22.50AH. Y = $180,000 + $18AH. Y = $945,000

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