Ask Question
10 March, 05:40

The master budget of Windy Compay shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 210000 Depreciation on factory building 150000 Total manufacturing overhead $1260000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of

a. $1,482,000.

b. $1,260,000.

c. $1,512,000.

d. $1,362,000.

+1
Answers (1)
  1. 10 March, 06:01
    0
    The correct answer is A.

    Explanation:

    Giving the following information:

    The master budget of Windy Compay shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $720000 Machine supplies 180000 Indirect materials 210000 Depreciation on factory building 150000

    Total manufacturing overhead $1,260,000

    A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of:

    Variable overhead = 720,000 + 180,000 + 210,000 = 1,110,000

    Unitary variable overhead = 1,110,000/50,000 = 22.2

    For 60,000 units:

    Total overhead = 22.2*60,000 + 150,000 = $1,482,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The master budget of Windy Compay shows that the planned activity level for next year is expected to be 50000 machine hours. At this level ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers