Eberley Corporation's Cost Formula for Its Manufacturing Overhead Is $25,700

question 407

Multiple Choice

Eberley Corporation's cost formula for its manufacturing overhead is $25,700 per month plus $10 per machine-hour. For the month of July, the company planned for activity of 5,900 machine-hours, but the actual level of activity was 5,920 machine-hours. The actual manufacturing overhead for the month was $86,800. The manufacturing overhead in the flexible budget for July would be closest to:

• A)$84,900
• B)$84,700
• C)$84,987
• D)$86,800

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