Question
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 4,100 machine-hours Variable overhead costs: Supplies $ 25,010 Indirect labor 41,000
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.
| Activity level | 4,100 | machine-hours | |
| Variable overhead costs: | |||
| Supplies | $ | 25,010 | |
| Indirect labor | 41,000 | ||
| Fixed overhead costs: | |||
| Supervision | 16,800 | ||
| Utilities | 7,500 | ||
| Depreciation | 8,500 | ||
| Total overhead cost | $ | 98,810 | |
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 4,000 machine-hours rather than 4,100 machine-hours?
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Management Accounting
Authors: Anthony A. Atkinson, Robert S. Kaplan, S. Mark Young, Rajiv D. Banker, Pajiv D. Banker
3rd Edition
9780130101952
