Schonhardt Corporation\'s relevant range of activity is 2,800 units to 6,000 uni

Question

Schonhardt Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces and sells 4,400 units, its average costs per unit are as follows:

D) 13200

Schonhardt Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces and sells 4,400 units, its average costs per unit are as follows: 16 Average Cost per Unit $7.65 $3.00 01:19:00 Direct materials Direct labor Variable manufacturing overhead 1.70 Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $0.70 $2.50 $1.00 $0.70 $0.80 If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $11,000 $19,360 $15,400

Explanation / Answer

Fixed manufacturing overhead 2.50*4,400 11000 Answer) $11,000 if 5,000 units are produced ,the total amount of fixed manufacturing cost is closest to $11,000 this is because fixed cost remains same in total and increases or decrease per unit with decrease or increase in production respectively.

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