History Bookmarks People Window Help ngx Connect html Help S Kerekes Manufacturi

Question

History Bookmarks People Window Help ngx Connect html Help S Kerekes Manufacturing Corporation has prepared the following overhead budget for next month Activity level 3,700 machine- hours Variable overhead coats: Supplies Indirect labor $21,090 35,520 Pixed overhead costs: Supervision Utilities Depreciation 18,100 7,100 8,100 $89,910 Total overhead cost 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 3,600 machine-hours rather than 3,700 machine-hours? Multiple Choice 87480 Prev 1of 11 Next > F3 4 0

Explanation / Answer

Answer)

Total budget overhead costs or next month of activity level is 3600 machine hours

Particulars $ Variable overhead costs: Supplies[$21090×3600/3700) 20520 Indirect labour[$35520×3600/3700] 34560 Fixed Overhead costs: Supervision 18100 Utilities 7100 Depreciation 8100 Total overhead cost 88380

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