Prather Corporation uses a job-order costing system with a single plantwide pred

Question

Prather Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The compa based its predetermined overhead rate for the current year on the following data: Total direct labor-hours 50,000 203Total fixed manufacturing overhead cost $285,000 3.80 Variable manufacturing overhead per direct labor-hour Recently, Job P513 was completed with the following characteristics Number of units in the job Total direct labor-hours Direct materials Direct labor cost 10 20 $710 $500 The estimated total manufacturing overhead is closest to: Multiple Choice

Explanation / Answer

Answer: $475000

Total fixed manufacturing overhead cost = $285000

Total variable manufacturing overhead cost = 50000 DLH x $3.80 = $190000

Total manufacturing overhead = $285000 + $190000 = $475000

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