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Question(s) / Instruction(s):

A company's planned activity level for next year is expected to be 200,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable

 

Fixed

Indirect materials

 

$180,000

 

Depreciation

 

$75,000

Indirect labor

 

240,000

 

Taxes

 

15,000

Factory supplies

 

30,000

 

Supervision

 

60,000

A flexible budget prepared at the 180,000 machine hours level of activity would show total manufacturing overhead costs of

 

$450,000.

 

 

$555,000.

 

 

$405,000.

 

 

$540,000.

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