Answer the Following Questions Using the Information Below:
Axle and Wheel

Multiple Choice

Answer the following questions using the information below:
Axle and Wheel Manufacturing currently produces 1000 axles per month.The following per unit data apply for sales to regular customers:
$\begin{array}{lr}\text { Direct materials } & \$ 30 \\\text { Direct manufacturing labour } & 5 \\\text { Variable manufacturing overhead } & 10 \\\text { Fixed manufacturing overhead } & \underline{40} \\{\text { Total manufacturing costs }} & \$ 85\end{array}$
-The plant has capacity for 2000 axles and is considering expanding production to 1500 axles.What is the total cost of producing 1500 axles?

A) $170 000
B) $85 000
C) $107 500
D) $102 500