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:

Binary Form

Binary Form is a way of structuring a piece of music in two related sections, both of which are usually repeated. This term is also used in computing to describe data represented in two states such as 0 and 1.

ALU

Arithmetic Logic Unit; a component of a computer processor that performs arithmetic and logical operations.

Eight-Byte String

A sequence of data consisting of eight bytes, which can represent a variety of data types, including characters or numerical values.

Bit

Short for binary digit (0s and 1s), the only data that a CPU can process.