The master budget of Rondelli 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:

Indirect labor $480,000

Machine supplies 120,000

Indirect materials 140,000

Depreciation on factory building 100,000

Total manufacturing overhead $840,000

A flexible budget for a level of activity of 60,000

machine hours would show total manufacturing overhead costs of?

		$988,000.
		$840,000.
		$1,008,000.
		$908,000.