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: If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $180,500
B) $134,500
C) $157,500
D) $146,000

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:  If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $180,500 
B) $134,500 
C) $157,500 
D) $146,000

Quizplus · Accepted Answer

11eacbfc_c7ab_bf17_8ffe_a789fd80cc1e_TB7552_00 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 9,000 units.

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