The estimated total manufacturing overhead is closest to:

A) $120,000
B) $96,003
C) $96,000
D) $216,000

Question

The estimated total manufacturing overhead is closest to:A) $120,000B) $96,003C) $96,000D) $216,000

Farouk Altaie · Accepted Answer

Final Answer : D, Explanation :  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

The estimated total manufacturing overhead is closest to:

A) $120,000
B) $96,003
C) $96,000
D) $216,000

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