Pollitt Potato Packers Has a Flexible Budget for Manufacturing Overhead

question 10

Multiple Choice

Pollitt Potato Packers has a flexible budget for manufacturing overhead that is based on direct labour hours. The following overhead costs appear on the flexible budget at the 200,000-hour level of activity:
$\begin{array} { | l | r | } \hline \text { Variable overhead costs (total) : } & \\\hline \text { Packing supplies } & \$ 120,000 \\\hline \text { Indirect labour } & \$ 180,000 \\\hline \text { Fixed overhead costs (total) : } &\\\hline \text { Utilities } & \$ 100,000 \\\hline \text { Insurance } & \$ 40,000 \\\hline \text { Rent } & \$ 20,000\\\hline\end{array}$

-At an activity level of 160,000 direct labour hours,what amount would the flexible budget estimate for the utilities?

• A) $80,000.
• B) $100,000.
• C) $120,000.
• D) $160,000.

---

Definitions:

Reviewing

Reviewing involves examining or assessing something critically or carefully, often for the purpose of giving feedback or making decisions.

Grammatical Errors

Mistakes made in the use of grammar, leading to incorrect sentence structure, verb tense issues, noun-pronoun agreement errors, etc.

MLA Style

A specific formatting and citation style guide used primarily for academic writing, developed by the Modern Language Association.

Parenthetical References

Citations within the body of a text that refer to sources, usually included in parentheses, indicating where information or quotes have been obtained.