_____ 15. Syracuse Manufacturing Corporation has prepared the following overhead
ID: 2487541 • Letter: #
Question
_____ 15. Syracuse Manufacturing Corporation has prepared the following overhead budget for next month. 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 6,600 machine-hours rather than 6,900 machine-hours?
A. $84,321.00
B. $87,590.00
C. $84,860.00
D. $83,781.74
Variable cost per MH for supplies = $21,390 ÷ 6,900 MHs = $3.10 per MH Variable cost per MH for indirect labor = $41,400 ÷ 6,900 MHs = $6.00 per MH
Activity level 6,900 machine-hours Variable overhead costs Supplies Indirect labor S21,390 41,400 Fixed overhead costs Supervision Utilities Depreciation. 14,600 3,500 Total overhead cost.Explanation / Answer
total budgeted overhead cost for next month if the activity level is 6,600 machine-hours=(3.10+6.00)*6,600+24,800=$84,860.
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