QUESTION 18 A company's planned activity level for next year is expected to be 200,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs: Variable Fixed Indirect materials $280,000 Depreciation $120,000 Indirect labor 400,000 Taxes 30,000 Factory supplies 40,000 Supervision 100,000 A flexible budget prepared at the 160,000 machine hours level of activity would show total manufacturing overhead costs of: a $826,000 b. $696,000 c. $720,000. d. $576,000