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

question 109

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: $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\text { Indirect materials } & \$ 120,000 & \text { Depreciation } & \$ 50,000 \\\text { Indirect labor } & 160,000 & \text { Taxes } & 10,000 \\\text { Factory supplies } & 20,000 & \text { Supervision } & 40,000\end{array}$ 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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Definitions:

Lowered Productivity

A reduction in the rate at which employees produce goods or services, often indicating inefficiencies or challenges within the workplace.

Quick Strikes

Rapid, short-term work stoppages by workers to protest against labor issues without engaging in prolonged strikes.

Pressuring Employer

Tactics or strategies used by employees or unions to encourage employers to meet their demands or negotiate.

Contractual Terms

Specific provisions or stipulations contained within a contract that outline the obligations, rights, and responsibilities of each party.