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A company's planned activity level for next year is expected to be 100,000 machine hours....

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Accounting

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 $120,000 Depreciation $50,000

Indirect labor 160,000 Taxes 10,000

Factory supplies 20,000 Supervision 40,000

A flexible budget prepared at the 110,000 machine hours level of activity would show total manufacturing overhead costs of:

a.

$300,000.
b.

$370,000
c.

$400,000

d.

$430,000

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