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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,900 machine-hours Variable overhead costs: Supplies $ 23,010 Indirect labor 38,220
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.
Activity level | 3,900 | machine-hours | |
Variable overhead costs: | |||
Supplies | $ | 23,010 | |
Indirect labor | 38,220 | ||
Fixed overhead costs: | |||
Supervision | 15,600 | ||
Utilities | 7,300 | ||
Depreciation | 8,300 | ||
Total overhead cost | $ | 92,430 | |
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 3,800 machine-hours rather than 3,900 machine-hours?
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