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

question 199

Multiple Choice

Gerstein 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 total fixed manufacturing overhead cost of $90,000, variable manufacturing overhead of $3.70 per direct labor-hour, and 50,000 direct labor-hours. The company recently completed Job M800 which required 150 direct labor-hours.
-The estimated total manufacturing overhead is closest to:

• A) $90,000
• B) $275,000
• C) $185,000
• D) $90,004