Question 9

Swifty Companys master budget shows that the planned activity level for next year is expected to be 20000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:

Indirect labour	$45000
Factory supplies	3000
Indirect materials	25000
Depreciation on factory building	15000
Total manufacturing overhead	$88000

Indirect labour, factory supplies, and indirect materials are variable costs. If the company operates at 20200 machine hours, how much is allowed on a flexible budget for manufacturing overhead costs?