Answer:
The correct answer is $27,675.
Explanation:
According to the scenario, the given data are as follows:
Variable manufacturing OH = $1.75
Fixed manufacturing OH = $19,800
Units = 4,500 units
So, we can calculate the total amount of manufacturing overhead cost by using following formula:
Total manufacturing OH = Total variable OH + Total fixed OH
Where, Total variable OH = $1.75 × 4,500 = $7,875
By putting the value, we get
Total Manufacturing OH = $7,875 + $19,800
= $27,675
