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What a flexible budget prepared at the machine hours

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Reference no: EM132774347

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$240000

Depreciation$60000

Indirect labor300000

Taxes10000

Factory supplies3000

Supervision50000

Problem 1: A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of

Option 1: $576000.
Option 2: $552000.
Option 3: $456000.
Option 4: $570000.

Reference no: EM132774347

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