Question

harootunian 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:

total machine-hours: 80,000
total fixed manufacturing overhead cost: $312,000
variable manufacturing overhead per machine-hour: $2.10

recently, job t629 was completed with the following characteristics:

number of units in the job: 50
total machine-hours: 200

the estimated total manufacturing overhead is closest to:

Explanation:

Identify the given values and formula

Using the Fixed Cost Behavior and Variable Cost Behavior knowledge points

$$
LATEXBLOCK0
$$

Calculate the estimated total manufacturing overhead

Using the Predetermined Overhead Rate knowledge point

$$
LATEXBLOCK1
$$

Answer:

• (A) $480,000 (Correct answer)
• (B) $168,000
• (C) $312,000
• (D) $312,002