The Following Cost Functions Were Developed for Manufacturing Overhead Costs

question 45

Multiple Choice

The following cost functions were developed for manufacturing overhead costs: $$\begin{array} { l l } \text { Manufacturing Overhead Cost } & \text { Cost Function } \\\hline\text { Electricity } & \$ 200 + \$ 20 \text { per direct labor hour } \\\text { Maintenance } & \$ 400 + \$ 30 \text { per direct labor hour } \\\text { Supervisors' salaries } & \$ 20,000 \text { per month } \\\text { Indirect materials } & \$ 16 \text { per direct labor hour }\end{array}$$ If January production is expected to be 2,000 units requiring 3,000 direct labor hours, estimated manufacturing overhead costs would be

• A)$20,733.
• B)$198,000.
• C)$152,600.
• D)$218,600.

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