Answer:
b. $825
Explanation:
Gerstein Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours
Then fixed operating overhead = total fixed manufacturing overhead cost divided by direct labor-hours
= $90,000/50,000 = $1.8 per labor
The company recently completed Job M800 which required 150 direct labor-hours.
Total overhead = fixed cost + variable cost = ($1.8 + $3.7) * 150 = $825