1. A companys planned activity level for next year is expected to be 50,000 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

   		$405,000
   		$480,000
   		$477,500
   		$425,000