Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: 2,400 machine-hours Supplies Indirect labor $10,560 19,920 Fixed overhead costs: Supervision 15,600 5,800 6,800 Utilities Depreciation Total overhead cost $58,680 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 2,300 machine-hours rather than 2,400 machine-hours?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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**Kerekes Manufacturing Corporation Overhead Budget**

Kerekes Manufacturing Corporation has prepared the following overhead budget for the next month:

- **Activity Level**: 2,400 machine-hours
  
**Variable Overhead Costs**:
- **Supplies**: $10,560
- **Indirect Labor**: $19,920

**Fixed Overhead Costs**:
- **Supervision**: $15,600
- **Utilities**: $5,800
- **Depreciation**: $6,800

**Total Overhead Cost**: $58,680

The company’s variable overhead costs are driven by machine-hours. 

**Question**: What would be the total budgeted overhead cost for next month if the activity level is 2,300 machine-hours instead of 2,400 machine-hours?
Transcribed Image Text:**Kerekes Manufacturing Corporation Overhead Budget** Kerekes Manufacturing Corporation has prepared the following overhead budget for the next month: - **Activity Level**: 2,400 machine-hours **Variable Overhead Costs**: - **Supplies**: $10,560 - **Indirect Labor**: $19,920 **Fixed Overhead Costs**: - **Supervision**: $15,600 - **Utilities**: $5,800 - **Depreciation**: $6,800 **Total Overhead Cost**: $58,680 The company’s variable overhead costs are driven by machine-hours. **Question**: What would be the total budgeted overhead cost for next month if the activity level is 2,300 machine-hours instead of 2,400 machine-hours?
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