The Farmington Company Has a Flexible Budget Based on Direct $\quad$

Multiple Choice

The Farmington Company has a flexible budget based on direct labor hours.At the 100,000 hours level, the budget shows the following variable overhead costs: Indirect materials $\quad$ $ 16,000
Indirect labor $\quad$$\quad$ $ 44,000 At an activity level of 120,000 hours, total variable costs will be:

A) $19,200
B) $60,000
C) $52,800
D) $72,000