A Company's Planned Activity Level for Next Year Is Expected

question 37

Multiple Choice

A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the manufacturing overhead costs shown: $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\hline \text { Indirect materials } & \$ 120,000 & \text { Depreciation } & \$ 50,000 \\\text { Indirect labor } & 160,000 & \text { Taxes } & 10,000 \\\text { Factory supplies } & 20,000 & \text { Supervision } & 40,000\end{array}$ A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of

• A)$270,000.
• B)$360,000.
• C)$370,000.
• D)$300,000.

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