Sudler Production Is Planning to Sell 700 Boxes of Ceramic

Multiple Choice

Sudler Production is planning to sell 700 boxes of ceramic tile, with production estimated at 800 boxes during May.Each box of tile requires 23 kilograms of clay mix and a half hour of direct labour.Clay mix costs $0.75 per kilogram and employees of the company are paid $20.00 per hour.Manufacturing overhead is applied at a rate of 125% of direct labour costs.Sudler has 3,000 kilograms of clay mix in beginning inventory and wants to have 4,000 kilograms in ending inventory.What is the total amount to be budgeted for manufacturing overhead for the month?

A) $10,000
B) $21,800
C) $27,250
D) $1,250