Problem: The production manager has provided you with the following information for varying levels of production:
Volume level in direct labor hours Total overhead cost
30,000 $340,000
40,000 400,000
50,000 435,000
60,000 477,000
70,000 ?
80,000 587,000
90,000 636,400
What is the total overhead cost at 70,000 direct labor hours?
a. $479,233
b. $522,667
c. $530,133
d. $532,000
e. $537,600