Answer:
$275,000
Explanation:
The computation of the total overhead cost is shown below:
= Variable overhead cost + fixed overhead cost
where,
Variable overhead cost equals to
= (Total estimated overhead cost ÷ fixed direct labor hour hours) × flexible budget labor hours
= ($200,000 ÷ 40,000) × 37,000
= $185,000
And, the fixed overhead is $90,000
ow put these values to the above formula
So, the value would be equal to
= $185,000 + $90,000
= $275,000
