Question
A company's planned activity level for next year is expected to be 100,000 machine hours. At...
A company's planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:
| Variable | Fixed |
| Indirect materials | $140,000 | Depreciation | $60,000 | |
| Indirect labor | 200,000 | Taxes | 10,000 | |
| Factory supplies | 20,000 | Supervision | 50,000 |
A flexible budget prepared at the 80,000 machine hours level of
activity would show total manufacturing overhead costs of
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