Question

Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,700 machine-hours Variable overhead costs: Supplies $ 21,090 Indirect labor 35,520 Fixed overhead costs: Supervision 18,100 Utilities 7,100 Depreciation 8,100 Total overhead cost $ 89,910 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 3,600 machine-hours rather than 3,700 machine-hours

Answer 1

the total budgeted overhead cost is $88,380

Step-by-step explanation:

The computation of the total budgeted overhead cost is shown below;

= Fixed overhead + variable overhead

= ($18,100 + $7,100 + $8,100) + (($21,090 + $35,520) ÷ 3,700 × 3,600)

= $33,300 + $55,080

= $88,380

hence, the total budgeted overhead cost is $88,380

The same would be considered