Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,800 machine- hours Variable overhead costs: Supplies $22,040 Indirect labor 36,860 Fixed overhead costs: Supervision 16,900 Utilities 7,200 Depreciation 8,200 Total overhead cost $91,200 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 3,700 machine-hours rather than 3,800 machine-hours?

Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,800 machine- hours Variable overhead costs: Supplies $22,040 Indirect labor 36,860 Fixed overhead costs: Supervision 16,900 Utilities 7,200 Depreciation 8,200 Total overhead cost $91,200 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 3,700 machine-hours rather than 3,800 machine-hours?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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