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ABC Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 4.15 Variable manufacturing overhead $ 1.65 Fixed manufacturing overhead $ 121,500 Variable selling and administrative expense $ 1.50 Fixed selling and administrative expense $ 40,500 If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

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Answer:

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Explanation:

$138,000

$138000 is the total amount of manufacturing overhead cost.

Variable Manufacturing Overhead (1.65 x 10000)

= 16500

Fixed Manufacturing Overhead

= 121500

Total Manufacturing Overhead

= 138000

Variable manufacturing overhead per unit and total fixed manufacturing overhead does not change with change in units.

What are overhead charges?

Overhead fees are what it costs to run the enterprise, such as hire, coverage, and utilities. Working expenses are required to run the enterprise and can't be avoided. Overhead prices ought to be reviewed frequently for you to boom profitability.

Which is an example of overhead fees?

Examples of overhead consist of hire, administrative fees, or employee salaries. Overhead charges may be found on a corporation's income statement, in which they are subtracted from its income to arrive at the net income parent.

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