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

question 6

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 following manufacturing overhead costs: $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\hline\text { Indirect materials } & \$ 140,000 & \text { Depreciation } & \$ 60,000 \\\text { Indirect labor } & 200,000 & \text { Taxes } & 10,000 \\\text { Factory supplies } & 20,000 & \text { Supervision } & 50,000\end{array}$ A flexible budget prepared at the 80,000 machine hours level of activity would show total manufacturing overhead costs of

• A)$288,000.
• B)$360,000.
• C)$384,000.
• D)$408,000.

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Definitions:

Legitimate Power

The authority that a person or a position holds, which is recognized as rightful by those they govern or lead, often derived from official or formal roles.

Expert Power

The influence and authority one possesses as a result of one's experience, skills, or knowledge in a specific area.

Reward Power

The capacity to influence others' behavior by offering them positive incentives.

Coalition Building

The process of assembling a group of diverse organizations or people to pursue a common goal or address a specific issue through collaboration.