A companys 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:

Variable		Fixed
Indirect materials	$130000		Depreciation	$37500
Indirect labor	150000		Taxes	7500
Factory supplies	18000		Supervision	30000

A flexible budget prepared at the 90000 machine hours level of activity would show total manufacturing overhead costs of

$335700.

$298000.

$268200.

$343200.