Perteet Corporation's relevant range of activity is 3,300 units to 7,500 units. When it produces and sells 5,400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.20 Direct labor $ 3.15 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 3.10 Fixed selling expense $ 0.60 Fixed administrative expense $ 0.30 Sales commissions $ 0.40 Variable administrative expense $ 0.45 If 4,200 units are produced, the total amount of manufacturing overhead cost is closest to: Multiple Choice $18,480 $29,970 $22,200 $15,540

$22,200

Explanation:

The total amount of manufacturing overhead cost will be gotten by adding the fixed manufacturing overhead cost to the variable manufacturing overhead cost. This will be:

Fixed manufacturing overhead cost = 5400 × $3.10 = $16740

Variable manufacturing overhead cost will be: = (7500 - 3300) × $1.30 = $5460

Therefore, the total amount of manufacturing overhead cost will be:

= $16740 + $5460

= $22,200

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