Question
Hatzenbuhler Manufacturing Corporation has prepared the following overhead budget for the coming month. Activity Level Machine Hours 6,800 Budgeted Variable Overhead Costs: supplies 22,440 indirect
Hatzenbuhler Manufacturing Corporation has prepared the following overhead budget for the coming month.
Activity Level Machine Hours | 6,800 | |||
Budgeted Variable Overhead Costs: | ||||
supplies | 22,440 | |||
indirect work | 55,760 | |||
Cost of general variable total | 78,200 | |||
Budgeted Fixed Overhead Costs: | ||||
Supervision | 19,300 | |||
utilities | 5,700 | |||
Depreciation | 7,400 | |||
Total fixed overhead costs | 32,400 | |||
Total Budgeted Overhead Cost | 110,600 |
The firm's variable overhead costs are determined by machine-hours.
Required
What would be the budgeted total overhead cost for the next month if the activity level is 6,600 machine-hours instead of 6,800 machine-hours?
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