If 12,500 units are produced $58,750 of manufacturing overhead cost incurred to support this level of production $4.70 is the total amount expressed on a per unit basis.
More about manufacturing overhead cost:
All ancillary expenses incurred throughout the production process are referred to as manufacturing overhead. Units created within an accounting periods are subject to this overhead.
All marketing and management activities are not included in manufacturing overhead. As a result, expenses related to corporate salaries, legal and audit fees, and bad debts are excluded from manufacturing overhead.
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