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?

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?

Quizplus · Accepted Answer

Variable cost per machine-hour = ($34,320 + $50,700) F1F1F1S1F1F1F10 7,800 machine-hours
= $10.90 per machine-hour
($10,200 + $5,600 + $8,800) + ($10.90 F1F1F1S1F1F1F10 7,900) = $110,710.00

Barringer Manufacturing Corporation Has Prepared the Following Overhead Budget for Next