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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.

Activity level

Variable overhead costs:

Supplies

Indirect labor

Fixed overhead costs:

Supervision

Utilities

Depreciation

Total overhead cost

$3,800$ machine$-$hours

$$22,040$

$36,860$

$16,900$

$7,200$

$8,20091,200$

$$91,200$

The company's variable overhead costs are driven by machine$-$hours.

What would be the total budgeted overhead cost for next month if the activity level is $3,700$ machine$-$hours rather than $3,800$ machine$-$hours?

Multiple Choice

$$88,930$

$$88,800$

$$89,650$