(Answered) A companys planned activity level is 200000 direct labor

Management Studies

A company's planned activity level is 200,000 direct labor hours. At this level of activity, the company budgeted the following manufacturing overhead costs:

Variable

Indirect materials: $174,000

Indirect labor: $180,000

Factory supplies: $46,000

Fixed

Depreciation: $65,000

Taxes: $12,000

Supervision: $55,000

The company had 90,000 direct labor hours.

What is the total manufacturing overhead cost using a flexible budget?

$332,000

$400,000

$532,000

$312,000

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