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A flexible budget for 15,000 hours revealed variable manufacturing overhead of $90,000 and fixed manufacturing overhead of $120,000. The budget for 25,000 hours would reveal total overhead costs of:

Respuesta :

Answer:

$270,000

Explanation:

The computation of the total overhead cost is shown below:

= Variable manufacturing overhead cost + fixed manufacturing overhead cost

where,

Variable manufacturing overhead cost is

= $90,000 ÷ 15,000 hours × 25,000 hours

= $150,000

And, the fixed manufacturing overhead is $120,000

So, the total overhead cost is

= $150,000 + $120,000

= $270,000

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