Dejarnette 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:

-The estimated total manufacturing overhead is closest to:
A) $64,000
B) $36,000
C) $28,000
D) $36,003

Question

Dejarnette 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:
 
-The estimated total manufacturing overhead is closest to:
A) $64,000 
B) $36,000 
C) $28,000 
D) $36,003

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) = $36,000 + ($2.80 per direct labor-hour × 10,000 direct labor-hours) = $36,000 + $28,000 = $64,000

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