In a month in which 30,000 equivalent full units are produced, Ratnere's manufacturing overhead should be approximately:

Question

Quizplus · Accepted Answer

We need to use the predetermined overhead rate to calculate the manufacturing overhead. Let’s assume the predetermined overhead rate is $4.40 per equivalent full unit (we don’t have that information). Therefore, the manufacturing overhead is calculated as follows:

Manufacturing overhead = Predetermined overhead rate x Equivalent full units produced 
Manufacturing overhead = $4.40 x 30,000 
Manufacturing overhead = $132,000

Therefore, the correct answer is C.

In a Month in Which 30,000 Equivalent Full Units Are