Question

If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your per unit answer to 2 decimal places.)

a) Total manufacturing overhead cost: $33,600, Manufacturing overhead per unit: $4.20
b) Total manufacturing overhead cost: $42,600, Manufacturing overhead per unit: $5.33
c) Total manufacturing overhead cost: $51,200, Manufacturing overhead per unit: $6.40
d) Total manufacturing overhead cost: $64,800, Manufacturing overhead per unit: $8.10

Answer 1

To calculate the total amount of manufacturing overhead cost incurred to support a production of 8,000 units, divide the total manufacturing overhead cost by the number of units produced. The manufacturing overhead per unit is $8.10.

Step-by-step explanation:

To calculate the total amount of manufacturing overhead cost incurred to support a production of 8,000 units, you need to divide the total manufacturing overhead cost by the number of units produced. The correct option is d) Total manufacturing overhead cost: $64,800. To find the manufacturing overhead per unit, divide the total manufacturing overhead cost by the number of units: $64,800 / 8,000 = $8.10 per unit.