Variable overhead costs, accounting homework help

Question 13

Poplar Corporation has prepared the following overhead budget for next month.

Activity level (in machine hours)

3,400

Variable overhead costs:

Supplies

$ 17,330

Indirect labor

33,670

Fixed overhead costs:

Supervision

19,300

Utilities

5,700

Depreciation

7,400

$ 83,400

Poplar’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 2,800 machine-hours rather than 3,400 machine-hours?

A.

$68,682

B.

$83,400

C.

$74,400

D.

$101,271

 
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