Perteet Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.70 Direct labor $ 3.25 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 0.70 Fixed administrative expense $ 0.40 Sales commissions $ 0.50 Variable administrative expense $ 0.55 If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to

Respuesta :

Answer:

Total overhead= $21,400

Explanation:

Giving the following information:

Variable manufacturing overhead per unit= $1.60

Fixed manufacturing overhead= $3.00*5,000= $15,000

4,000 units are produced

Because the production level is between the relevant range, the total fixed costs remain constant.

Total overhead= 1.6*4,000 + 15,000

Total overhead= $21,400