Asked by Magen Phillips on Jul 03, 2024
Verified
The estimated total manufacturing overhead for the Milling Department is closest to:
A) $408,000
B) $38,000
C) $148,000
D) $186,000
Manufacturing Overhead
All manufacturing costs that are not directly assignable to specific products, including indirect materials, labor, and other indirect costs.
Milling Department
A specific department within a manufacturing facility where material, such as metal or grain, is ground or processed.
- Evaluate the effect of anticipated total costs for manufacturing overhead on the budgets of various departments.
Verified Answer
ZK
Zybrea KnightJul 09, 2024
Final Answer :
D
Explanation :
Milling Department overhead cost = Fixed manufacturing overhead cost + (Variable overhead cost per machine-hour × Total machine-hours in the department)
= $148,000 + ($1.90 per machine-hour × 20,000 machine-hours)
= $148,000 +$38,000 = $186,000
= $148,000 + ($1.90 per machine-hour × 20,000 machine-hours)
= $148,000 +$38,000 = $186,000
Learning Objectives
- Evaluate the effect of anticipated total costs for manufacturing overhead on the budgets of various departments.
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