Pedregon Corporation has provided the following information

Pedregon Corporation has provided the following information:

If 3,500 units are produced, the total amount of manufacturing overhead cost is closest to:

Multiple Choice

$20,475

$17,500

$25,475

$14,350

	Cost per Unit		Cost per Period
Direct materials	$	6.85
Direct labor	$	3.30
Variable manufacturing overhead	$	1.65
Fixed manufacturing overhead				$	14,700
Sales commissions	$	0.85
Variable administrative expense	$	0.90
Fixed selling and administrative expense				$	5,000

solution) manufacturing overhead cost includes variable manufacturing overhead plus variable manufacturing overhead

variable manufacturing overhead = 3500 units × $1.65 = $5775

fixed manufacturing overhead = $ 14700

so adding both we get manufacturing overhead cost = $5775 + $14700 = $20475 ( option a is the answer)