Schwiesow Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 7.10
Direct labor $ 3.20
Variable manufacturing overhead $ 1.50
Fixed manufacturing overhead $10,000
Sales commissions $1.00
Variable administrative expense $ 0.50
Fixed selling and administrative expense $ 5,000

If 4,500 units are produced, the total amount of manufacturing overhead cost is closest to:

$16,750

Explanation:

Given that,

Direct materials = $7.10 per unit

Direct labor = $3.20  per unit

Variable manufacturing overhead = $1.50 per unit

Fixed manufacturing overhead = $10,000

Hence,

Total amount of manufacturing overhead cost:

= Variable manufacturing overhead + Fixed manufacturing overhead

= ($1.50 × 4,500 units) + $10,000

= $6,750 + $10,000

= $16,750

Therefore, the total amount of manufacturing overhead cost is closest to $16,750.

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