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 $ 8,100Explanation / 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
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