Question

XYZ Co. uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. It 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

the estimated total manufacturing overhead is $550,000

Step-by-step explanation:

The computation of the estimated total manufacturing overhead is given below:

= Fixed manufacturing overhead + variable manufacturing overhead

= $440,000 + $2.20 × 50,000 machine hours

= $440,000 + $110,000

= $550,000

hence, the estimated total manufacturing overhead is $550,000