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

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 volume 
Overhead rate per unit = $168,500 / 10,300 units 
Overhead rate per unit = $16.36

Once 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 produced 
Total manufacturing overhead cost = $16.36 * 5,000 units 
Total manufacturing overhead cost = $81,800

Thus, the closest answer choice is C) $33,700. 11efc28c_f69f_27c6_80e6_87d940d53251_TB2627_00

Sparacino Corporation Has Provided the Following Information: If