Pollitt Potato Packers has a flexible budget for manufacturing overhead that is based on direct labour-hours. The following overhead costs appear on the flexible budget at the 200,000-hour level of activity

Variable overhead costs(total):

Packing supplies

$120,000

Indirect labour

$180,000

Fixed overhead costs (total):

Utilities

$100,000

Insurance

$40,000

Rent

$20,000

At an activity level of 180,000 direct labour-hours, the flexible budget would show indirect labour cost of?

Question 33 options:

$108,000

$144,000

$162,000

$180,000