06:50 Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. machine-hours. Activity level Variable overhead costs: Supplies Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost 3,900 $23,010 38,220 15,600 7,300 8,300 $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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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00:36:50
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
3,900 machine-hours
$23,010
38,220
15,600
7,300
8,300
$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?
Transcribed Image Text:1 00:36:50 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 3,900 machine-hours $23,010 38,220 15,600 7,300 8,300 $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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