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ExtremeBDS [4]
3 years ago
5

erekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 3,200 machine-hours V

ariable overhead costs: Supplies $ 16,640 Indirect labor 29,120 Fixed overhead costs: Supervision 15,400 Utilities 6,600 Depreciation 7,600 Total overhead cost $ 75,360 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 3,100 machine-hours rather than 3,200 machine-hours
Business
1 answer:
kvasek [131]3 years ago
6 0

Answer:

Variable overhead= $44,330

Fixed overhead= $29,600

Total overhead= $73,930

Explanation:

Giving the following information:

Total variable overhead= $45,760

Total fixed overhead= $29,600

Total overhead cost= $75,360

<u>First, we need to calculate the  variable predetermined overhead rate:</u>

Variable predetermined overhead rate= 45,760/3,200= $14.3 per machine hour

<u>Now, for 3,100 hours:</u>

Variable overhead= 14.3*3,100= $44,330

Fixed overhead= $29,600

Total overhead= $73,930

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