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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,500 machine-hours Variable overhead costs: Supplies $ 12,250 Indirect labor 22,000
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.
Activity level |
| 2,500 | machine-hours | |
Variable overhead costs: |
| |||
Supplies | $ | 12,250 |
| |
Indirect labor |
| 22,000 |
| |
Fixed overhead costs: |
|
|
| |
Supervision |
| 15,500 |
| |
Utilities |
| 5,500 |
| |
Depreciation |
| 6,500 |
| |
Total overhead cost | $ | 61,750 |
| |
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 2,400 machine-hours rather than 2,500 machine-hours?
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