Laflame corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. the company based its predetermined overhead rate for the current year on the following data: total machine-hours 70,000 total fixed manufacturing overhead cost $ 357,000 variable manufacturing overhead per machine-hour $ 3.90 the estimated total manufacturing overhead is closest to:

$630,000

Explanation:

Total manufacturing overhead = Total Variable Manufacturing Overhead + Total fixed Manufacturing Overhead

As provided total fixed overhead = $357,000

And since actual activity is not provided, the standard activity of 70,000 machine hours will be considered.

Total variable overheads based on predetermined overhead rate = Rate pre-determined machine hours

= $3.90 70,000 = $273,000

Total Manufacturing Overhead = $357,000 + $273,000 = $630,000

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