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 100,000 machine hours.At this level of activity, the company budgeted the following manufacturing overhead costs: $\begin{array}{lrlr}\text { Variable }&&\text { Fixed }\\\hline \text { Indirect materials } & \$ 120,000 & \text { Depreciation } & \$ 50,000 \\\text { Indirect labor } & 160,000 & \text { Taxes } & 10,000 \\\text { Factory supplies } & 20,000 & \text { Supervision } & 40,000\end{array}$ A flexible budget prepared at the 90,000 machine hours level of activity would show total manufacturing overhead costs of

A) $270,000.
B) $360,000.
C) $370,000.
D) $300,000.