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Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,800 machine- ho

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Answer #1

Supervision = $16,000

Utilities = $6,200

Depreciation = $7,200

Total Fixed overhead = $29,400

Total Variable overhead per unit = ($13,440 + $24,360) / 2,800 Machine-hours

= $13.50 per Machine hour

Total overhead cost at 2,700 machine hours =

(2,700 * $13.50) + $29,400

= $65,850

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