Kerekes Manufacturing Corporation has prepared the following overhead budget for next month.   Activity level 3,200 machine-hours Variable overhead costs:     Supplies $16,640   Indirect labor 29,120   Fixed overhead costs:     Supervision 15,400   Utilities 6,600   Depreciation 7,600   Total overhead cost $75,360     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 3,100 machine-hours rather than 3,200 machine-hours?

FINANCIAL ACCOUNTING
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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 3,200 machine-hours
Variable overhead costs:    
Supplies $16,640  
Indirect labor 29,120  
Fixed overhead costs:    
Supervision 15,400  
Utilities 6,600  
Depreciation 7,600  
Total overhead cost $75,360  

 

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 3,100 machine-hours rather than 3,200 machine-hours?

 

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