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?
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