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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
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