Answer:
$275,000
Explanation:
Please refer to the below for the computation of the total overhead cost
= Variable overhead cost + Fixed overhead cost
Where,
Variable overhead costs
= (Total estimated overhead cost ÷ Fixed direct labor hours) × Flexible budget labor hours
= ($200,000 ÷ 40,000) × 37,000
= $185,000
Recall that the fixed overhead cost is $90,000
Therefore,
Total overhead cost = $185,000 + $90,000
Total overhead cost = $275,000
