A Company's Planned Activity Level for Next Year Is Expected

Multiple Choice

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: $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\hline \text { Indirect materials } & \$ 90,000 & \text { Depreciation } & \$ 37,500 \\\text { Indirect labor } & 120,000 & \text { Taxes } & 7,500 \\\text { Factory supplies } & 15,000 & \text { Supervision } & 30,000\end{array}$ A flexible budget prepared at the 90000 machine hours level of activity would show total manufacturing overhead costs of

A) $202500.
B) $270000.
C) $277500.
D) $225000.