In master budget of Sheffield Manufacturing shows that the planned activity level for next year is expected

In master budget of Sheffield Manufacturing shows that the planned activity level for next year is expected

to be 50000 machine hours. At this level of activity,the following manufacturing overhead costs are expected:

Indirect labor $8,10,000.00

Machine Supplies $1,30,000.00

Indirect Materials $3,00,000.00

Depreciation on factory building $1,40,000.00

Total manufacturing overhead $13,80,000.00

a flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs.

(Ans) $1628000 (complete working in the solution)