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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