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The master budget of Nelson Company shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level
The master budget of Nelson Company shows that the planned activity level for next year is expected to be 50,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected NELSON COMPANY MASTER BUDGET FOR PLANNED ACTIVITY LEVEL OF 50,000 MACHINE HOURS ndirect labor S 240,000 Machine supplies 60,000 Indirect materials 70,000 Depreciation on factory building (fixed) 50,000 Total manufacturing overhead $ 420,000 A flexible budget for a level of activity of 60,000 machine hours would show total manufacturing overhead costs of: Select one: a. $454,000 b. $504,000 c. $420,000
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