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A company's relevant range of production is 10,000 to 15,000 units. When It produces and sells 12,000 units, its unit costs are as follows: Amount
A company's relevant range of production is 10,000 to 15,000 units. When It produces and sells 12,000 units, its unit costs are as follows: Amount per Unit $ 7.00 Direct materials Direct labor $ 4.00 Variable manufacturing overhead $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.00 $ 1.00 $ 0.50 Sales commissions Variable administrative expense If 11,000 units are produced, what is the total amount of direct manufacturing costs incurred to support this level of production? Multiple Choice $137,500 $148,500 $121,000 $192,500
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