Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells
Question:
Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Average Cost per Unit
Direct materials………………………………………………...........….$ 5.50
Direct labor……………………………………………………................$ 3.90
Variable manufacturing overhead………………………………..$ 130
Fixed manufacturing overhead………………………………...$ 13.50
Fixed selling expense………………………………....................$ 2.25
Fixed administrative expense……………………………….......$ 1.80
Sales commissions………………………………........................$ 0.50
Variable administrative expense………………………………...$ 0.45
If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
$128,250
$135,000
$148,500
$121,500
College Accounting Chapters 1-30
ISBN: 978-1259631115
15th edition
Authors: John Price, M. David Haddock, Michael Farina