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

Quizplus · Accepted Answer

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 cost

Total Fixed Manufacturing Overhead Cost = $12,500 per month
Total Variable Manufacturing Overhead Cost per unit = ($0.75 + $0.25) = $1.00
Number of units produced = 5,000

Total Variable Manufacturing Overhead Cost for 5,000 units = $1.00 * 5,000 = $5,000
Total Fixed Manufacturing Overhead Cost for the production of 5,000 units = $12,500

Total Manufacturing Overhead Cost for 5,000 units = $12,500 + $5,000 = $17,500

Therefore, 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