Stock 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

Question

Stock 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

Quizplus · Accepted Answer

Variable cost per MH for supplies = $21,390 F1F1F1S1F1F1F10 6,900 MHs = $3.10 per MH
Variable cost per MH for indirect labor = $41,400 F1F1F1S1F1F1F10 6,900 MHs = $6.00 per MH
 11eaa48f_7b5d_6bda_9e4a_cf1a4ccefe8c_TB2485_00

Stock Manufacturing Corporation Has Prepared the Following Overhead Budget for Next