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1.Sparacino Corporation has provided the following information: If 5,000 units a

ID: 2603171 • Letter: 1

Question

1.Sparacino Corporation has provided the following information:

If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

2. Glew Corporation has provided the following information:

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

3.Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:

If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 25,200 Sales commissions $ 1.50 Variable administrative expense $ 0.55 Fixed selling and administrative expense $ 8,100

Explanation / Answer

1.

No of units produced = 5,000

Variable manufacturing overhead per unit = 1.70

Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead

                                                                                = (5,000 * 1.70) + 25,200

                                                                                = 8,500 + 25,200

                                                                                = 33,700

2.

Indirect manufacturing are costs nothing but manufacturing overheads

No of units produced = 3,000     

Variable manufacturing overhead per unit = 1.75

Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead

                                                                                = (3,000 * 1.75) + 8,800

                                                                                = 5,250 + 8,800

                                                                                = 14,050

3.

No of units produced = 10,000  

Variable manufacturing overhead per unit = 1.30

Total manufacturing overhead cost = Variable manufacturing overhead + Fixed manufacturing overhead

                                                                                = (10,000 * 1.30) + (9,000 * 13.50)

                                                                                = 13,000 + 121,500

                                                                                = 134,500