Question

A company’s planned activity level for next year is expected to be 100000 machine hours. At...

A company’s 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 $210000 Depreciation $60000
Indirect labor 270000 Taxes 10000
Factory supplies 27000 Supervision 50000


A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of

A

 $507000.

B

 $525600.

C

 $501600.

D

 $405600.
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Answer #1

The answer to the above mentioned question is

B. $525,600

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