Multiple Choice Question 55 The master budget of Concord Corporation shows that

Question

Multiple Choice Question 55 The master budget of Concord Corporation 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 Machine supplies Indirect materials Depreciation on factory building Total manufacturing overhead $740000 240000 190000 210000 $1380000 A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of O $1656000 O $1446000 O $1614000. O S1380000 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Indirect labor 888000 =740000/50000*60000 Machine supplies 288000 =240000/50000*60000 Indirect materials 228000 =190000/50000*60000 Depreciation on factory building 210000 Total manufacturing overhead 1614000 Option 3 is correct

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