1. The following are manufacturing overhead costs expected in the master budget for Ace Manufacturing Co:

   Planned activity level: 30,000 machine hrs.

   Indirect labor	$200,000
   Machine supplies	320,000
   Indirect materials	170,000
   Depreciation on factory building	125,000
   Total manufacturing overhead	$815,000

   A flexible budget for a level of activity of 45,000 machine hours would show total manufacturing overhead costs of

   $1,222,500.

   $1,160,000.

   $1,000,000.

   $ 543,333.