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

A) $18,000
B) $19,250
C) $18,625
D) $20,500

Question

Wessner Corporation has provided the following information:   If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:A)  $18,000B)  $19,250C)  $18,625D)  $20,500

Randy Ngeyus · Accepted Answer

Final Answer : B, Explanation :  The given information does not directly provide the total amount of manufacturing overhead cost. Therefore, we need to calculate it based on the provided data.Total manufacturing overhead cost = Total fixed manufacturing overhead cost + Total variable manufacturing overhead costTotal Fixed Manufacturing Overhead Cost = $12,500 per monthTotal Variable Manufacturing Overhead Cost per unit = ($0.75 + $0.25) = $1.00Number of units produced = 5,000Total Variable Manufacturing Overhead Cost for 5,000 units = $1.00 * 5,000 = $5,000Total Fixed Manufacturing Overhead Cost for the production of 5,000 units = $12,500Total Manufacturing Overhead Cost for 5,000 units = $12,500 + $5,000 = $17,500Therefore, the closest option to the total amount of manufacturing overhead cost for the production of 5,000 units is $19,250 (option B).

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

A) $18,000
B) $19,250
C) $18,625
D) $20,500

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