Gerstein Corporation uses a job-order costing system with a single plantwide pre

Question

Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
  

The estimated total manufacturing overhead is closest to:

$90,000

$275,000

$185,000

$90,004

$90,000

$275,000

$185,000

$90,004

Explanation / Answer

Estimated total manufacturing overhead = 90000+(50000*3.7)= 275000 Option 2 is correct

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.