Question

Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 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?

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