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

question 22

Multiple Choice

A company's planned activity level for next year is expected to be 100000 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 90000 machine hours level of activity would show total manufacturing overhead costs of

• A) $270000.
• B) $360000.
• C) $370000.
• D) $300000.

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