Dehner 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 the following data: Recently, Job P951 was completed with the following characteristics:
The estimated total manufacturing overhead is closest to:
A) $120,000
B) $96,003
C) $96,000
D) $216,000

Question

Dehner 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 the following data:  Recently, Job P951 was completed with the following characteristics:
 The estimated total manufacturing overhead is closest to:
A) $120,000 
B) $96,003 
C) $96,000 
D) $216,000

Quizplus · Accepted Answer

Estimated total manufacturing overhead cost = Estimated total fixed manufacturing overhead cost + (Estimated variable overhead cost per unit of the allocation base × Estimated total amount of the allocation base) = $96,000 + ($3.00 per direct labor-hour × 40,000 direct labor-hours) = $96,000 + $120,000 = $216,000

Dehner Corporation Uses a Job-Order Costing System with a Single