Question

Sparacino Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 25,200 Sales commissions $ 1.50 Variable administrative expense $ 0.55 Fixed selling and administrative expense $ 8,100 If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Answer 1

The total amount of manufacturing overhead cost when 5,000 units are produced is $33,700.

Step-by-step explanation:

The total amount of manufacturing overhead cost when 5,000 units are produced can be calculated by determining the sum of the fixed and variable manufacturing overhead costs. Based on the information provided:

• Fixed manufacturing overhead cost = $25,200
• Variable manufacturing overhead cost per unit = $1.70

To find the total variable manufacturing overhead cost, we multiply the variable cost per unit by the number of units produced:

Total variable manufacturing overhead cost = $1.70 x 5000 units = $8,500

Now, we can calculate the total amount of manufacturing overhead cost:

Total manufacturing overhead cost = Fixed manufacturing overhead cost + Total variable manufacturing overhead cost

Total manufacturing overhead cost = $25,200 + $8,500 = $33,700

Answer 2

Total overhad= $33,700

Step-by-step explanation:

Giving the following information:

Variable manufacturing overhead $ 1.70

Fixed manufacturing overhead $ 25,200

Number of units= 5,000

The total manufacturing overhead is the sum of the total variable overhead and total fixed overhead.

Total overhead= 1.7*5,000 + 25,200

Total overhad= $33,700