Question

Yoshino 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 total fixed manufacturing overhead cost of $440,000, variable manufacturing overhead of $2.20 per machine-hour, and 50,000 machine-hours. The estimated total manufacturing overhead is closest to:_________

Answer 1

Answer:

Total overhead= $550,000

Explanation:

Giving the following information:

The total fixed manufacturing overhead cost of $440,000

variable manufacturing overhead of $2.20 per machine-hour

50,000 machine-hours.

To calculate the total overhead, we need to sum to the fixed overhead the total variable manufacturing overhead:

Total overhead= 440,000 + 2.2*50,000= $550,000