D) $408,000.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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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