The Master Budget of Windy Co A Flexible Budget for a Level of Activity of 60,000

question 125

Multiple Choice

The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: $$\begin{array} { l r } \text { Indirect labor } & \$ 720,000 \\\text { Machine supplies } & 180,000 \\\text { Indirect materials } & 210,000 \\\text { Depreciation on factory building } & 150,000 \\\text { Total manufacturing overhead } & \$ 1,260,000\end{array}$$ A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of

• A) $1,482,000.
• B) $1,260,000.
• C) $1,512,000.
• D) $1,362,000.