# Question & Answer: A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the manufacturing overhead costs listed a…..

A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the manufacturing overhead costs listed above for March is: A) \$68,000 B) \$35,000 C) \$516,000 D) \$293,000 Given the cost formula, Y = \$16,000 + \$3.40X, total cost for an activity level of 4,000 units would be: A) \$13,600 B) \$3,600 C) \$19,600 D) \$16,000 Reamer Corporation uses a predetermined overhead rate based on machine-hours to apply manufacture overhead to jobs. The Corporation has provided the following estimated costs for next year: Reamer estimates that 500 direct labor-hours and 1,000 machine-hours will be worked during the yea predetermined overhead rate per hour will be: A) \$6.80 per machine-hour B) \$6.00 per machine-hour C) \$3.00 per machine-hour D) \$3.40 per machine-hour

## Expert Answer

 MANUFACTURING OVERHEAD COST Factory supplies \$9,000 Factory depreciation \$33,000 indirect labor \$26,000 Total manufacturing overhead \$68,000

Answer:

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Question & Answer: A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the manufacturing overhead costs listed a…..
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1. \$68,000

16. Total cost for an activity level of 4,000 units:

Y=\$16,000+\$3.40X

Y=\$16,000+\$(3.4*4,000)

Y=\$16,000+\$13,600

Y=\$29,600

17.

 MANUFACTURING OVERHEAD COST Salary of production supervisor \$2,000 Indirect materia; \$400 Rent on factory equipment \$1,000 Total manufacturing overhead \$3,400 Per machine hour=(3400/1000) \$3.40

Answer:

D) \$3.40 per machine -hour