Question: 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

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:

Variable:

Indirect materials
$90,000

Indirect labor
$120,000

Factory supplies
15,000

Fixed:

Depreciation
$37,500

Taxes
750,000

Supervision
30,000

A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of:

202,500?

270,000?

277,500?

225,000?

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