D) $408,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jackson Company's expected activity level for next year is 100,000 machine hours.
At this level of activity, the company budgeted the following manufacturing
overhead costs:
Variable
Fixed
Indirect
$140,000
Depreciation $60,000
materials
Indirect labor 200,000
Taxes
10,000
Factory
20,000
Supervision 50,000
supplies
A flexible budget prepared at the 80,000 machine hours level of activity would
show total manufacturing overhead costs of how much?
A) $384,000.
B) $360,000.
C) $458,000.
D) $408,000.
2
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