Question

Perteet Corporation's relevant range of activity is 4,800 units to 10,000 units. When it produces and sells 7,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.70 Direct labor $ 3.40 Variable manufacturing overhead $ 1.80 Fixed manufacturing overhead $ 3.60 Fixed selling expense $ 0.50 Fixed administrative expense $ 0.20 Sales commissions $ 0.30 Variable administrative expense $ 0.35 If 5,200 units are produced, the total amount of manufacturing overhead cost is closest to:

Answer 1

$36,000

Step-by-step explanation:

The computation of the total amount of manufacturing overhead is shown below:

But before that determine the following amounts

Fixed manufacturing overhead is

= 7,400 × $3.6

= $26,640

ANd, the Variable manufacturing overhead is

= 5,200 × $1.80

= $9,360

So,

Total manufacturing overhead is

= $26,640 + $9,360

= $36,000