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D) $408,000.

D) $408,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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