Question

Machine-hours 22,000 15,000
Direct labor-hours 4,000 3,000
Total fixed manufacturing overhead cost $ 99,000 $ 9,900
Variable manufacturing overhead per machine-hour $ 1.10
Variable manufacturing overhead per direct labor-hour $ 3.20

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

Answer 1

Answer:

$19,500

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.  It is the beginning of your question

Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The Casting Department’s predetermined overhead rate is based on machine-hours and the Customizing Department’s predetermined overhead rate is based on direct labor-hours. At the beginning of the current year, the company had made the following estimates:

Here is my answer:

The formula to find total manufacturing overhead for the Customizing Department:

= Total fixed manufacturing overhead cost + Direct labor-hours × Variable manufacturing overhead per direct labor-hour

=  $ 9,900 + 3,000 direct labor hours* $ 3.20

=  $19,500

Hope it will find you well.