ABC Company produced 4,000 units during 20x9 and had the following cost structure. What is the total manufacturing overhead for 20x9?
Cost per Unit | Cost per Period | |
Direct materials | $7.05 | |
Direct labor | $3.50 | |
Variable manufacturing overhead | $1.65 | |
Fixed manufacturing overhead | $11,000 | |
Sales commissions | $1.00 | |
Variable administrative expense | $0.40 | |
Fixed selling and administrative expense | $5,500 |
a.) 11,000
b.) 23,200
c.) 6,600
d.) 17,600
Answer: d. 17,600
Explanation:
Total Manufacturing Overhead = Variable Manufacturing Overhead + Fixed Manufacturing Overhead = $6,600 + $11,000 = $17,500
Working for Variable Manufacturing Overhead:
Variable Manufacturing Overhead = Units Produced x Variable Manufacturing Overhead Rate per Unit = 4,000 x $1.65 = $6,600
Please do not forget to like the answer if you find it useful. It encourages me to help the students by answering further questions.
Get Answers For Free
Most questions answered within 1 hours.