Business, 09.09.2019 21:20, sanafarghal
Rhome corporation's relevant range of activity is 2,000 units to 6,000 units. when it produces and sells 4,000 units, its average costs per unit are as follows:
average cost per unit
direct materials $ 5.40
direct labor $ 3.55
variable manufacturing overhead $ 1.70
fixed manufacturing overhead $ 3.00
fixed selling expense $ 0.60
fixed administrative expense $ 0.40
sales commissions $ 1.00
variable administrative expense $ 0.40
if 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
a. $18,000
b. $12,000
c. $13,500
d. $15,000
Answers: 2
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Rhome corporation's relevant range of activity is 2,000 units to 6,000 units. when it produces and s...
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