Nerve Pain Innovations anticipated that 84,000 process hours would be worked during an upcoming accounting period when, in fact, 90,000 hours were actually worked. One of the company's cost functions is expressed as follows:Y = $16PH + $640,000 where PH is defined as process hoursWhat is Nerve Pain's flexible budget (Y) for the preceding cost function?
A. $1,984,000
B. $1,221,000
C. $1,280,000
D. $2,112,000
E. $2,080,000
Answer: E
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