Question

Perteet Corporation's relevant range of activity is 3,900 units to 8,500 units. When it produces and sells 6,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.25 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.80 Fixed administrative expense $ 0.50 Sales commissions $ 0.60 Variable administrative expense $ 0.65 If 4,600 units are produced, the total amount of manufacturing overhead cost is closest to:

Answer 1

Answer:

Total overhead= $28,600

Explanation:

Giving the following information:

6,200 units:

Variable manufacturing overhead $1.50

Fixed manufacturing overhead $ 3.50

First, we need to calculate the total fixed manufacturing overhead:

Total fixed overhead= 3.5*6,200= 21,700

Now, for 4,600 units:

Total overhead= 4,600*1.5 + 21,700

Total overhead= $28,600