Question

The master budget of Sunland Company shows that the planned activity level for next year is...

The master budget of Sunland Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $820000 Machine supplies 120000 Indirect materials 150000 Depreciation on factory building 120000 Total manufacturing overhead $1210000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of?

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Answer #1

Answer:

A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of

Machine hours

            60000

Variable manufacturing overhead

Indirect labor

$           984,000

Machine supplies

144,000

Indirect materials

180,000

Total variable manufacturing overhead

1,308,000

Fixed manufacturing overhead

Depreciation on factory building

120,000

Total fixed manufacturing overhead

120,000

Total manufacturing overhead cost

$          1,428,000

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