Answer:
$60,380
Explanation:
Given that,
Activity level = 2,500 machine-hours
Variable 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
At activity level of 2,500, the total variable overhead cost is as follows:
= Supplies + Indirect labor
= 12,250 + 22,000
= 34,250
At activity level of 2,400, the total variable overhead cost is as follows:
[tex]=Total\ variable\ overhead\times \frac{2,400}{2,500}[/tex]
[tex]=34,250\times \frac{2,400}{2,500}[/tex]
= $32,880
Total fixed overhead:
= Supervision + Utilities + Depreciation
= 15,500 + 5,500 + 6,500
= $27,500
Total budgeted overhead at 2,400 machine hours:
= Total variable cost at 2,400 hours + Total fixed cost
= $32,880 + $27,500
= $60,380
