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 Fixed
Indirect materials $90,000 Depreciation $37,500
Indirect labor 120,000 Taxes 7,500
Factory supplies 15,000 Supervision 30,000
A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of
| $277,500. | ||
| $202,500. | ||
| $270,000. | ||
| $225,000. |
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