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What amount would the flexible budget

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Pollitt Potato Packers has a flexible budget for manufacturing overhead that is based on direct labour hours. The following overhead costs appear on the flexible budget at the 200,000-hour level of activity:

Variable overhead costs (total):

Packing supplies $120,000

Indirect labour $180,000

Fixed overhead costs (total):

Utilities $100,000

Insurance $40,000

Rent $20,000

Problem 1: At an activity level of 180,000 direct labour hours, what amount would the flexible budget estimate for indirect labour cost?

A) $180,000.

B) $144,000.

C) $162,000.

D) $108,000.

Reference no: EM132607853

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