Question: Bakos Corporation's abbreviated flexible budget for two levels of activity appears below:
|
|
Cost Formula (per machine-hour)
|
Activity
(in machine-hours)
|
|
|
|
2,900
|
3,000
|
|
Total variable overhead cost
|
$8.7
|
$ 25,230
|
$ 26,100
|
|
Total fixed overhead cost
|
|
102,100
|
102,100
|
|
Total overhead cost
|
|
$127,330
|
$128,200
|
If the denominator level of activity is 2,900 machine-hours, the variable element in the predetermined overhead rate would be: