Question

Schwiesow corporation has provided the following information: cost per unit cost per period direct materials $ 7.40 direct labor $ 3.80 variable manufacturing overhead $ 1.80 fixed manufacturing overhead $ 16,000 sales commissions $ 1.00 variable administrative expense $ 0.50 fixed selling and administrative expense $ 5,600 if 7,500 units are produced, the total amount of manufacturing overhead cost is closest to:

Answer 1

The total amount of manufacturing overhead cost is closest to $ 29,500.

In business, overhead or overhead rate refers to an ongoing fee for working in a commercial enterprise. Overheads are the expenditure that can not be quite simply traced to or recognized with any unique revenue unit, not like running fees which include uncooked cloth and exertions.

Overhead fees, frequently referred to as overhead or working prices, confer with those expenses associated with running a commercial enterprise that cannot be connected to creating or producing a product or service. they're the prices the business incurs to live in the enterprise, irrespective of its success degree.

Examples of overhead encompass hire, administrative expenses, or worker salaries. Overhead fees may be observed on a business enterprise's income assertion, wherein they are subtracted from its profits to reach at the internet profits discern.

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