Answer:
(C) $5,800
Explanation:
Total Manufacturing overhead is a function of costs such electricity used to operate the production machines, depreciation cost on the factory assets, factor personnel outside of direct labor.
As such, given that ABC Company has a variable manufacturing overhead rate of $4 per direct labor hour. If 200 direct labor hours are budgeted and fixed manufacturing overhead is $5,000, including $900 of depreciation,
Total budgeted manufacturing overhead
= ($4 × 200) + $5,000
= $5800
