The master budget of Sheridan Company shows that the planned activity level for next year is expected to be 50000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:

Indirect labor	$690000
Machine supplies	270000
Indirect materials	310000
Depreciation on factory building	150000
Total manufacturing overhead	$1420000

A flexible budget for a level of activity of 60000 machine hours would show total manufacturing overhead costs of

$1554000.

$1420000.

$1704000.

$1674000.