A department has budgeted monthly manufacturing overhead cost of $270,000 plus $3 per direct labor hour. If a flexible budget report reflects $522,000 for total budgeted manu-facturing cost for the month, the actual level of activity achieved during the month was

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The flexible budget formula is $270,000 + $3 per direct labor hour. Setting this equal to $522,000, we solve for direct labor hours: $522,000 = $270,000 + $3x, which gives x = 84,000 direct labor hours.

A Department Has Budgeted Monthly Manufacturing Overhead Cost of $270,000