Mccaskell 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: If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $14,000
B) $93,200
C) $89,100
D) $103,100

Question

Mccaskell 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:  If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $14,000 
B) $93,200 
C) $89,100 
D) $103,100

Quizplus · Accepted Answer

11eacbfc_c7a8_b1be_8ffe_41a3dcf42586_TB7552_00 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 9,000 units.

Mccaskell Corporation's Relevant Range of Activity Is 7,000 Units to 11,000