Barringer 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 7,900 machine-hours rather than 7,800 machine-hours?
A) $110,710.00
B) $109,620.00
C) $110,868.00
D) $111,025.38

Question

Barringer 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 7,900 machine-hours rather than 7,800 machine-hours?
A) $110,710.00 
B) $109,620.00 
C) $110,868.00 
D) $111,025.38

Quizplus · Accepted Answer

The Answer is A

Barringer Manufacturing Corporation Has Prepared the Following Overhead Budget for Next