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

Quizplus · Accepted Answer

The manufacturing overhead rate is calculated as follows:
Total Manufacturing Overhead Cost / Total Units Produced
= ($38,500 + $6,350 + $14,500 + $9,950) / 15,000
= $69,300 / 15,000
= $4.62 per unit

To find the total amount of manufacturing overhead cost for 5,000 units, we multiply the manufacturing overhead rate by the number of units produced:
$4.62 per unit x 5,000 units = $23,100

Therefore, the closest amount to $23,100 is $33,700, which is choice C.

Sparacino Corporation Has Provided the Following Information: If 5,000