Odonnel 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 $36,000, variable manufacturing overhead of $2.80 per direct labor-hour, and 10,000 direct labor-hours. The estimated total manufacturing overhead is closest to: Multiple Choice $64,000 $36,000 $28,000 $36,003

Respuesta :

Answer:

The total manufacturing cost is closest to $64000

Explanation:

The manufacturing overhead costs are costs other than direct costs that incur in the manufacturing of a product and are not directly attributable to a single product. These costs can be fixed or variable or both. We allocate these overheads to product costs using a certain Overhead Absorption rate.

The total Manufacturing overheads = Fixed Manufacturing Overheads + Variable Manufacturing Overheads

Fixed Manufacturing Overheads = $36000

Variable manufacturing Overheads = 2.8*10000 = $28000

Total = 36000 + 28000 = $64000