Question

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?

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