The estimated total manufacturing overhead for the Customizing Department is closest to:

A) $63,500
B) $21,500
C) $42,000
D) $33,853

Question

The estimated total manufacturing overhead for the Customizing Department is closest to:A) $63,500B) $21,500C) $42,000D) $33,853

Naren Bhende · Accepted Answer

Final Answer : A, Explanation :  Customizing Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per direct labor-hour × Total direct labor-hours in the department)= $42,000 + ($4.30 per direct labor-hour × 5,000 direct labor-hours)= $42,000 + $21,500 = $63,500

The estimated total manufacturing overhead for the Customizing Department is closest to:

A) $63,500
B) $21,500
C) $42,000
D) $33,853

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