A company's planned activity level for next year is expected to be 100000 machine hours.At this level of activity the company budgeted the following manufacturing overhead costs: \begin{array}{l}\begin{array}{lr}\quad\quad\quad\text { Variable }\\ \hline \text { Indirect materials } & \$ 140,000 \\\text { Indirect labor } & 200,000 \\\text { Factory supplies } & 20,000\end{array}\\begin{array}{l}\quad\quad\quad\quad\text { Fixed }\\\hline \text { Depreciation } & \$ 60,000 \\\text { Taxes } & 10,000 \\\text { Supervision } & 50,000\end{array}\end{array} A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of
A) $288000.
B) $360000.
C) $384000.
D) $408000.
Correct Answer:
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