Barrick Company Has Established a Flexible Budget for Manufacturing Overhead $\text { Variable costs (total): }$

Barrick Company has established a flexible budget for manufacturing overhead based on direct labour-hours. Total budgeted costs at 200,000 direct labour-hours are as follows $\text { Variable costs (total) : }$
$\begin{array}{ll}\text { Packing supplies } & £ 120,000 \\\text { Indirect labour } & £ 180,000 \\\text { Fixed costs (total) : } & \\\text { Utilities } & £ 100,000 \\\text { Rent } & £ 40,000 \\\text { Insurance } & £ 20,000\end{array}$
-At an activity level of 170,000 direct labour-hours, the flexible budget for factory overhead would show the budgeted amount for utilities as

A) £85,000.
B) £140,000.
C) £160,000.
D) £100,000.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free