Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: Supplies 3,000 machine-hours Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost $15,000 26,700 16,500 6,400 7,400 $72,000 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 2,900 machine-hours rather than 3,000 machine-hours? $69,970 $72,000 $69,600 $70,610
Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: Supplies 3,000 machine-hours Indirect labor Fixed overhead costs: Supervision Utilities Depreciation Total overhead cost $15,000 26,700 16,500 6,400 7,400 $72,000 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 2,900 machine-hours rather than 3,000 machine-hours? $69,970 $72,000 $69,600 $70,610
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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