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Pedregon Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $6.45
Direct labor $3.30
Variable manufacturing overhead $1.25
Fixed manufacturing overhead $16,500
Sales commissions $0.45
Variable administrative expense $0.50
Fixed selling and administrative expense $4,200

If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

a. $22,750
b. $20,500
c. $26,950
d. $18,000

Respuesta :

Answer:

$22,750

Explanation:

Data provided

Fixed manufacturing overhead = $16,500

Units produced = 5,000

Variable manufacturing overhead = $1.25

The computation of the total amount of manufacturing overhead cost is shown below:-

Manufacturing overhead = Fixed manufacturing overhead + Variable manufacturing overhead

= $16,500 + (5,000 × $1.25)

= $16,500 + $6,250

= $22,750

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