Discuss the total budgeted overhead cost


Barringer Manufacturing Corporation has prepared the following overhead budget for next month.

Activity level... 7,800 machine-hours

  • Variable overhead costs:
  • Supplies... $34,320
  • Indirect labor... 50,700
  • Fixed overhead costs:
  • Supervision... 10,200
  • Utilities... 5,600
  • Depreciation... 8,800
  • Total overhead cost... $109,620

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?

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Accounting Basics: Discuss the total budgeted overhead cost
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