Question: 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
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 | $120000 | Depreciation | $60000 | |
| Indirect labor | 180000 | Taxes | 10000 | |
| Factory supplies | 18000 | Supervision | 50000 | |
A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of
A. $374400.
B. $350400.
C. $318000.
D. $254400.
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