The following cost functions were developed for manufacturing overhead costs: $$\begin{array} { l l }
\text { Manufacturing Overhead Cost } & \text { Cost Function } \
\text { Electricity } & £ 400 + £ 140 \text { per direct labour hour } \
\text { Maintenance } & £ 800 + £ 40 \text { per direct labour hour } \
\text { Supervisors' salaries } & £ 16,000 \text { per month } \
\text { Indirect materials } & £ 50 \text { per direct labour hour }
\end{array}$$ If July production is expected to be 200 units that require 300 direct labour hours, estimated manufacturing overhead costs would be
A)£17,430.
B)£55,200.
C)£63,200.
D)£86,200.

Question

The following cost functions were developed for manufacturing overhead costs: $$\begin{array} { l l } 
\text { Manufacturing Overhead Cost } & \text { Cost Function } \
\text { Electricity } & £ 400 + £ 140 \text { per direct labour hour } \
\text { Maintenance } & £ 800 + £ 40 \text { per direct labour hour } \
\text { Supervisors' salaries } & £ 16,000 \text { per month } \
\text { Indirect materials } & £ 50 \text { per direct labour hour }
\end{array}$$ If July production is expected to be 200 units that require 300 direct labour hours, estimated manufacturing overhead costs would be
A)£17,430.
B)£55,200.
C)£63,200.
D)£86,200.

Quizplus · Accepted Answer

The Answer of The following cost functions were developed for manufacturing overhead costs: $$\begin{array} { l l } 
\text { Manufacturing Overhead Cost } & \text { Cost Function } \
\text { Electricity } & £ 400 + £ 140 \text { per direct labour hour } \
\text { Maintenance } & £ 800 + £ 40 \text { per direct labour hour } \
\text { Supervisors' salaries } & £ 16,000 \text { per month } \
\text { Indirect materials } & £ 50 \text { per direct labour hour }
\end{array}$$ If July production is expected to be 200 units that require 300 direct labour hours, estimated manufacturing overhead costs would be
A)£17,430.
B)£55,200.
C)£63,200.
D)£86,200.

The Following Cost Functions Were Developed for Manufacturing Overhead Costs