Final answer:
The estimated manufacturing overhead costs at 10,000 units of production using Stanfil Corporation's cost function Y = $8,000 + 1.60X are $24,000. This is calculated by multiplying 10,000 units by the variable cost per unit which is $1.60, and then adding the fixed cost of $8,000.the right answer is c)
Step-by-step explanation:
The question involves a cost function used by the Stanfil Corporation for estimating manufacturing overhead costs, represented by Y = $8,000 + 1.60X, where Y is the total overhead cost and X is the number of units produced. The cost function includes a fixed cost, often referred to as overhead, and a variable cost proportional to the units of production. To calculate the estimated manufacturing overhead costs at 10,000 units of production, we can substitute X with 10,000 in the given cost function.
Step 1: Identify the fixed cost and variable cost per unit from the cost function.
Fixed cost (overhead): $8,000
Variable cost per unit: $1.60
Step 2: Substitute the number of units into the cost function.
Y = $8,000 + 1.60(10,000)
Step 3: Perform the calculation.
Y = $8,000 + $16,000
Y = $24,000
The estimated manufacturing overhead costs at 10,000 units of production are $24,000, thus the correct answer is option (c).