Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: 3,100 machine-hours Supplies $15,810 Indirect labor 27,900 Fixed overhead costs: Supervision 17,000 Utilities 6,500 Depreciation 7,500 Total overhead cost $74,710 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 3,000 machine-hours rather than 3,100 machine-hours?

Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level Variable overhead costs: 3,100 machine-hours Supplies $15,810 Indirect labor 27,900 Fixed overhead costs: Supervision 17,000 Utilities 6,500 Depreciation 7,500 Total overhead cost $74,710 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 3,000 machine-hours rather than 3,100 machine-hours?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter7: Budgeting

Section: Chapter Questions

Problem 15EB: Judges Gavel uses this information when preparing their flexible budget: direct materials of $3 per...

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