Answer:
The correct answer is C.
Explanation:
Giving the following information:
The master budget of Windy Co. 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 $ 720,000
Machine supplies 180,000
Indirect materials 210,000
Depreciation on factory building 150,000
Total manufacturing overhead $1,260,000
A flexible budget for a level of activity of 60,000 machine hours
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 1,110,000/50,000= 22.2 per machine hour
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 22.2*60,000= 1,332,000 + 150,000= 1,482,000
