The master budget of windy compay shows that the planned activity level for next year is expected to be 5 machine hours. at this level of activity, the following manufacturing overhead costs are expected: indirect labor $72 machine supplies 18 indirect materials 21 depreciation on factory building 15 total manufacturing overhead $126 a flexible budget for a level of activity of 6 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.

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

b $274.07

step-by-step explanation:

you just devide 222 by 0.81