Question

The best estimate of the total cost to manufacture 5,100 units is closest to: (Round your intermediate calculations to 2 decimal places.)

Answer 1

a. $1,009,560

Step-by-step explanation:

Note: The full question is attached

Variable portion = (Total overhead for 5,400 units - Total overhead for 4,400 units) / (5,400 units - 4,400 units)

Variable portion = [($68.30)(5,400) - ($74.30)(4400)/(5,400 - 4,400)

Variable portion = (368,820 - 326,920)/1000

Variable portion = 41.9

Total cost for manufacturing 5,100 units = (5,100) ($77.90 + $50.20 +$ 41.90 )+ (368,820 - (5,400)(41.90)

Total cost for manufacturing 5,100 units = $867,000 + $142,560

Total cost for manufacturing 5,100 units = $1,009,560