Asked by kirston seldon on May 04, 2024
Verified
Sparacino Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $24,750
B) $42,650
C) $33,700
D) $29,225
Produced Units
refer to the total number of units of product that have been completed within a given period.
- Determine and compute costs associated with manufacturing overhead.
Verified Answer
ZK
Zybrea KnightMay 05, 2024
Final Answer :
C
Explanation :
The manufacturing overhead rate is calculated as follows:
Total Manufacturing Overhead Cost / Total Units Produced
= ($38,500 + $6,350 + $14,500 + $9,950) / 15,000
= $69,300 / 15,000
= $4.62 per unit
To find the total amount of manufacturing overhead cost for 5,000 units, we multiply the manufacturing overhead rate by the number of units produced:
$4.62 per unit x 5,000 units = $23,100
Therefore, the closest amount to $23,100 is $33,700, which is choice C.
Total Manufacturing Overhead Cost / Total Units Produced
= ($38,500 + $6,350 + $14,500 + $9,950) / 15,000
= $69,300 / 15,000
= $4.62 per unit
To find the total amount of manufacturing overhead cost for 5,000 units, we multiply the manufacturing overhead rate by the number of units produced:
$4.62 per unit x 5,000 units = $23,100
Therefore, the closest amount to $23,100 is $33,700, which is choice C.
Learning Objectives
- Determine and compute costs associated with manufacturing overhead.
Related questions
During March, Pendergraph Corporation Incurred $60,000 of Actual Manufacturing Overhead ...
If 5,000 Units Are Produced, the Total Amount of Manufacturing ...
Hardigree Corporation Uses a Job-Order Costing System ...
Martin Company Applies Manufacturing Overhead Based on Direct Labor Hours ...
Fort Corporation Had the Following Transactions During Its First Month ...