Dejarnette Corporation uses a joborder costing system with a

Dejarnette Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:

The estimated total manufacturing overhead is closest to:

Multiple Choice

$416,003

$248,000

$664,000

$416,000

Total machine-hours		80,000
Total fixed manufacturing overhead cost	$	416,000
Variable manufacturing overhead per machine-hour	$	3.10

Solution

FIXED OVERHEADS 416000 VARIABLE OVERHEADS 248000 (80000*3.10) TOTAL MANUFACTURING OVERHEADS 664000