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Multiple Choice Question 86

Bramble Corp. produced 280000 units in 130000 direct labor hours. Production for the period was estimated at 290000 units and 145000 direct labor hours. A flexible budget would compare budgeted costs and actual costs, respectively, at

140000 hours and 130000 hours.

145000 hours and 130000 hours.

130000 hours and 130000 hours.

140000 hours and 145000 hours.

Multiple Choice Question 80

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:

              Variable                            Fixed              Indirect materials$190000 Depreciation$60000Indirect labor250000 Taxes10000Factory supplies25000 Supervision50000

A flexible budget prepared at the 80000 machine hours level of activity would show total manufacturing overhead costs of

$372000.

$465000.

$492000.

$468000.

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