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:

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them a right to a portion of the corporation's profits.

Syndicate

A group of individuals or organizations that come together to share or participate in a specific financial transaction or investment.

Investment Group

A collection of individuals or entities that pool their capital together to invest in various projects or assets, often guided by a common investment strategy.

Minnesota Vikings

A professional American football team based in Minneapolis, Minnesota, competing in the NFL.