How the hours would show total manufacturing


The master budget of Carpenter Co. shows that the planned activity level for next year is expected to be 100,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect Labor of 480,000; Machine supplies of $120,000; Indirect materials of $140,000; Depreciation on factory building of $100,000 with a Total Manufacturing Overhead of $840,000. A flexible budget for a level of activity of 120,000 hours would show total manufacturing overhead costs of?

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Accounting Basics: How the hours would show total manufacturing
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