Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual manufacturing overhead for the month was $86,800.
-The manufacturing overhead in the planning budget for July would be closest to:

Question

Quizplus · Accepted Answer

To calculate manufacturing overhead in the planning budget, we need to add estimated indirect materials, indirect labor, and other overhead costs.

Given:
- Indirect materials cost: $20,000
- Indirect labor cost: $40,000
- Other overhead costs: $24,700
Total manufacturing overhead cost in the planning budget = $20,000 + $40,000 + $24,700 = $84,700

Therefore, the closest answer choice is C.

Eberley Corporation's Cost Formula for Its Manufacturing Overhead Is $25,700