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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level4,000machine-hours Variable overhead costs: Supplies$24,000 Indirect labor39,600 Fixed overhead costs: Supervision14,000 Utilities7,400
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.
Activity level4,000machine-hours Variable overhead costs: Supplies$24,000 Indirect labor39,600 Fixed overhead costs: Supervision14,000 Utilities7,400 Depreciation8,400 Total overhead cost$93,400 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 3,900 machine-hours rather than 4,000 machine-hours?
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