Valvano Corporation Uses a Job-Order Costing System with a Single

Multiple Choice

Valvano 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 total fixed manufacturing overhead cost of $440,000, variable manufacturing overhead of $2.20 per machine-hour, and 50,000 machine-hours. The estimated total manufacturing overhead is closest to:

A) $440,000
B) $110,000
C) $440,002
D) $550,000