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?
$68,682
$83,400
$74,400
$101,271
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