The following extract is taken from the overhead budget of Mkulima Enterprises:

Question

Budgeted activity                                                 50%                          75%

Budgeted overhead                                      TZS.100,000           TZS.112,500

 

The overhead budget for an activity level of 80% would be

 

A. TZS.115,000

B. TZS.120,000

C. TZS.136,000

D. TZS.160,000

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