Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500
B) $18,000
C) $12,000
D) $15,000

Question

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500 
B) $18,000 
C) $12,000 
D) $15,000

Quizplus · Accepted Answer

11eacbfc_c7ac_8270_8ffe_895c6e2c5436_TB7552_00 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 4,000 units.

Rhome Corporation's Relevant Range of Activity Is 2,000 Units to 6,000