At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $12,000 in fixed costs. If volume increases to 9,000 units and both 8,000 units and 9,000 units are within the relevant range, then the company would expect to incur total factory overhead costs of:

Total cost= $34,500

Explanation:

Giving the following information:

At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $12,000 in fixed costs.

Because the 9,000 units are between the relevant range, the fixed costs will remain constant.

First, we need to calculate the unitary variable overhead cost:

Unitary overhead= 20,000/8,000= $2.5 per unit

Now, we can calculate the total cost of 9,000 units:

Total cost= 9,000*2.5 + 12,000= $34,500

borrow money from the government then pay the government back 5k