Zhou, Inc. is planning its overhead costs for an upcoming period when 105,000 machine hours are expected to be worked. Activity may drop as low as 98,000 hours if some overdue equipment maintenance procedures are performed; on the other hand, activity could jump to 114,000 hours if one of Zhou's major competitors likely goes bankrupt. A flexible overhead budget would best be based on:

Multiple Choice

• 114,000 hours.

• 98,000 hours, 105,000 hours, and 114,000 hours.

• 98,000 hours.

• 105,000 hours.

• 98,000 hours and 114,000 hours.