Question 8(1 point)

Reference: 09-15

Pollitt Potato Packers has a flexible budget for manufacturing overhead that is based on direct labour hours. The following overhead costs appear on the flexible budget at the 200,000-hour level of activity:

Variable overhead costs (total):Packing supplies$120,000Indirect labour$180,000Fixed overhead costs (total):Utilities$100,000Insurance$40,000Rent$20,000

At an activity level of 180,000 direct labour hours, what amount would the flexible budget estimate for indirect labour cost?

Question 8 options:

A)

$180,000.

B)

$144,000.

C)

$162,000.

D)

$108,000.