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

question 42

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: $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\text { Indirect materials } & \$ 140,000 & \text { Depreciation } & \$ 60,000 \\\text { Indirect labor } & 200,000 & \text { Taxes } & 10,000 \\\text { Factory supplies } & 20,000 & \text { Supervision } & 50,000\end{array}$ 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:

Job Performance

The evaluation of how effectively an individual performs the tasks, duties, and responsibilities associated with their job role.

Individual's Ability

The capacity or skillset possessed by a person, which can influence their performance in various tasks.

Motivation

The inner drive or factors that stimulate individuals to take actions towards achieving their goals or satisfying their needs.

Frederick Herzberg

An influential American psychologist known for developing the Motivation-Hygiene Theory, which distinguishes between factors that create job satisfaction (Motivators) and those that prevent dissatisfaction (Hygiene factors).