The estimated total manufacturing overhead is closest to:

A) $416,003
B) $248,000
C) $664,000
D) $416,000

Question

The estimated total manufacturing overhead is closest to:A) $416,003B) $248,000C) $664,000D) $416,000

Heather Stokes · Accepted Answer

Final Answer : C, Explanation :  The estimated total manufacturing overhead is the sum of all indirect costs. From the given data, the indirect costs include indirect labor ($260,000), indirect materials ($84,000), factory rent ($180,000), property taxes ($60,000), and utilities ($80,000). Adding these up gives a total of $664,000, which is closest to option C. 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)= $416,000 + ($3.10 per machine-hour × 80,000 machine-hours)= $416,000 + $248,000 = $664,000

The estimated total manufacturing overhead is closest to:

A) $416,003
B) $248,000
C) $664,000
D) $416,000

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