Moriah Manufacturing Company Expects to Incur the Following Per Unit

question 125

Multiple Choice

Moriah Manufacturing Company expects to incur the following per unit costs for 1,000 units of production: $$\begin{array} { l l } \text { Direct materials } & 3 \mathrm { lb } @ \$ 5 = \$ 15 \\\text { Direct labor } & 1 \text { hr } @ 6 = \$ 6 \\\text { Variable overhead } & 75 \% \text { of direct } \\& 1 \text { labor costs } \\\text { Fixed overhead } & 50 \% \text { of direct } \\& 1 \text { abor costs }\end{array}$$ What is the total amount of overhead included in the overhead budget?

• A)$4,500
• B)$3,000
• C)$11,250
• D)$7,500