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Determine what would be the total budgeted overhead cost

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Reference no: EM132527398

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

Activity level 3,400machine-hours

Variable overhead costs:

Supplies  $18,360

Indirect labor 31,620

Fixed overhead costs:

Supervision 16,000

Utilities 6,800

Depreciation 7,800

Total overhead cost $80,580

  • The company's variable overhead costs are driven by machine-hours.

Question 1: What would be the total budgeted overhead cost for next month if the activity level is 3,300 machine-hours rather than 3,400 machine-hours? (Round your intermediate calculations to 2 decimal places.)

Multiple Choice

Option 1: $78,430

Option 2: $78,210

Option 3: $79,110

Option 4: $80,580

Reference no: EM132527398

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