Final answer:
The calculated total overhead cost of Aquamarine Company, after an increase of 700 orders at a variable rate of $15 per order, is $38,300, which does not match any of the provided options.
Step-by-step explanation:
To determine the total overhead cost of Aquamarine Company after the increase in orders, we will first calculate the additional overhead costs incurred due to the increase in the number of orders, and then add this to the initial estimated overhead costs.
We are given that the variable rate per order is $15, and there is an increase of 700 orders. Thus, the additional overhead costs would be 700 orders × $15/order = $10,500 in additional ordering costs.
The initial estimated overhead costs are $27,800, which includes $9,450 of ordering costs. To find the new total overhead costs, we would add the initial estimated overhead costs and the additional ordering costs: $27,800 + $10,500 = $38,300.
However, none of the provided options (a) $20,000, (b) $30,850, (c) $25,000, (d) $28,850 match the calculated amount of $38,300. It seems that there might be an error in the question or the options provided. Therefore, the correct answer, given the information and calculations, is not listed.