A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells...

Transcribed Image Text:

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 Direct materials. $ 7.00 Direct labor $ 4.00 Variable manufacturing overhead. $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.00 Sales commissions Variable administrative expense If 11,700 units are produced, what is the total amount of indirect manufacturing costs incurred to support this level of production? $ 1.00 $ 0.50 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 Direct materials. $ 7.00 Direct labor $ 4.00 Variable manufacturing overhead. $ 1.50 Fixed manufacturing overhead $ 5.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.00 Sales commissions Variable administrative expense If 11,700 units are produced, what is the total amount of indirect manufacturing costs incurred to support this level of production? $ 1.00 $ 0.50