Sparacino Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

A) $24,750
B) $42,650
C) $33,700
D) $29,225

Question

Sparacino Corporation has provided the following information:   If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:A) $24,750B) $42,650C) $33,700D) $29,225

Fatima Ramsey · Accepted Answer

Final Answer : C, Explanation :  In order to calculate the total amount of manufacturing overhead costs, we need to first determine the total amount of overhead cost per unit:Overhead rate per unit = Total estimated overhead cost / Total estimated production volumeOverhead rate per unit = $168,500 / 10,300 unitsOverhead rate per unit = $16.36Once we have the overhead rate per unit, we can use it to calculate the total manufacturing overhead cost for 5,000 units:Total manufacturing overhead cost = Overhead rate per unit * Number of units producedTotal manufacturing overhead cost = $16.36 * 5,000 unitsTotal manufacturing overhead cost = $81,800Thus, the closest answer choice is C) $33,700.

Sparacino Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

A) $24,750
B) $42,650
C) $33,700
D) $29,225

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