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

question 120

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:. $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\hline \text { Indirect materials } & \$ 140,000 & \text { Depreciation } & \$ 60,000 \\\text { Indirect labor } & 200,000 & \text { Taxes } & 10,000 \\\text { Factory supplies } & 20,000 & \text { Supervision } & 50,000\end{array}$ A flexible budget prepared at the 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:

Surface Fire

A fire that burns only the surface litter and undergrowth of a forest or grassland, often used in controlled burns for forest management.

Mature Trees

Fully grown trees that have reached their full size and reproductive potential, playing a crucial role in ecosystems by providing habitat and maintaining biodiversity.

Seedlings

are young plants, especially trees, that have germinated from seeds and are in the early stages of growth.

Crown Fire

A wildfire that spreads from treetop to treetop, often out of control, and is more intense than a surface fire.