Kerekes Manufacturing Corporation has prepared the following overhead budget for next month. Activity level 2,500machine-hoursVariable overhead costs:Supplies$12,250 Indirect labor 22,000 Fixed overhead costs: Supervision 15,500 Utilities 5,500 Depreciation 6,500 Total overhead cost$61,750 ?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 2,400 machine-hours rather than 2,500 machine-hours?
A. $59,280
B. $61,750
C. $59,830
D. $60,380
Answer: D
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