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

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Accounting

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

Activity level 2,700 machine-hours
Variable overhead costs:
Supplies $ 12,690
Indirect labor 23,220
Fixed overhead costs:
Supervision 16,500
Utilities 6,100
Depreciation 7,100
Total overhead cost $ 65,610

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 2,600 machine-hours rather than 2,700 machine-hours?

Multiple Choice

$63,670

$63,180

$64,280

$65,610

Answer & Explanation Solved by verified expert
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