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

question 79

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}{l}\begin{array}{lr}\quad\quad\quad\text { Variable }\\ \hline \text { Indirect materials } & \$90,000 \\\text { Indirect labor } & 120,000 \\\text { Factory supplies } & 15,000\end{array}\\begin{array}{l}\quad\quad\quad\quad\text { Fixed }\\\hline \text { Depreciation } & \$ 375000 \\\text { Taxes } & 7,500 \\\text { Supervision } & 30,000\end{array}\end{array} A flexible budget prepared at the 90000 machine hours level of activity would show total manufacturing overhead costs of

• A)$202500.
• B)$270000.
• C)$277500.
• D)$225000.

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