The Following Cost Functions Were Developed for Manufacturing Overhead Costs

question 27

Multiple Choice

The following cost functions were developed for manufacturing overhead costs: $$\begin{array} { l l } \text { Manufacturing Overhead Cost } & \text { Cost Function } \\\text { Electricity } & \$ 200 + \$ 20 \text { per direct labour hour } \\\text { Maintenance } & \$ 400 + \$ 30 \text { per direct labour hour } \\\text { Supervisors' salaries } & \$ 20000 \text { per month } \\\text { Indirect materials } & \$ 16 \text { per direct labour hour }\end{array}$$ If June production is expected to be 2,000 units requiring 3,000 direct labour hours,what would be the estimated manufacturing overhead costs?

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

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