Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: 3,100 machine-hours Supplies $15,810 Indirect labor 27,900 Fixed overhead costs: Supervision Utilities 17,000 6,500 Depreciation 7,500 Total overhead cost $74,710 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 3,000 machine-hours rather than 3,100 machine-hours? Multiple Choice $72,650 $72,300 $73,300 $74,710

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.
Activity level
3,100 machine-hours
Variable overhead costs:
Supplies
$15,810
Indirect labor
27,900
Fixed overhead costs:
Supervision
17,000
Utilities
6,500
Depreciation
7,500
Total overhead cost
$74,710
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 3,000 machine-hours rather than 3,100 machine-hours?
Multiple Choice
$72,650
$72,300
$73,300
$74,710
Transcribed Image Text:Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,100 machine-hours Variable overhead costs: Supplies $15,810 Indirect labor 27,900 Fixed overhead costs: Supervision 17,000 Utilities 6,500 Depreciation 7,500 Total overhead cost $74,710 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 3,000 machine-hours rather than 3,100 machine-hours? Multiple Choice $72,650 $72,300 $73,300 $74,710
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