Homework Answers
We have to find total manufacturing overhead cost, if 4400 units have been produced by the company.
Total manufacturing overhead costs consists of both fixed and variable overhead costs.
In the question, we have been given the per unit cost when 5800 units are produced.
It is to be noted that fixed costs remain fixed irrespective of the no. of units produced.
Therefore Fixed manufacturing overhead cost will be = 5800 units * $3.30 =$19,140 (as per unit cost for 5800 units has been given, though it is fixed for n number of units unless otherwise specified.)
Variable Manufacturing overhead will vary with the no. of units produced. Therefore variable manufacturing overhead will be = 4,400 units * $1.40 = $6,160
Therefore, Total Manufacturing Overhead cost = $19,140 + $6,160 = $25,300
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