The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected: Indirect labor $ 720,000 Machine supplies 180,000 Indirect materials 210,000 Depreciation on factory building 150,000 Total manufacturing overhead $1,260,000 A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of Group of answer choices a. $1,362,000 b. $1,512,000 c. $1,482,000 d. $1,260,000.

The correct answer is C.

Explanation:

Giving the following information:

The master budget of Windy Co. shows that the planned activity level for next year is expected to be 50,000 machine hours.

At this level of activity, the following manufacturing overhead costs are expected:

Indirect labor $ 720,000

Machine supplies 180,000

Indirect materials 210,000

Depreciation on factory building 150,000

Total manufacturing overhead $1,260,000

A flexible budget for a level of activity of 60,000 machine hours

Estimated manufacturing overhead rate = total estimated overhead costs for the period / total amount of allocation base

Estimated manufacturing overhead rate = 1,110,000/50,000 = 22.2 per machine hour

Allocated MOH = Estimated manufacturing overhead rate * Actual amount of allocation base

Allocated MOH = 22.2*60,000 = 1,332,000 + 150,000 = 1,482,000