Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Required:a. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred?b. If 6,000 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?c. If 4,000 units are produced, what is the total amount of direct manufacturing cost incurred?d. If 4,000 units are produced, what is the total amount of indirect manufacturing cost incurred?

Question

Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
  Required:a. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred?b. If 6,000 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?c. If 4,000 units are produced, what is the total amount of direct manufacturing cost incurred?d. If 4,000 units are produced, what is the total amount of indirect manufacturing cost incurred?

Quizplus · Accepted Answer

The Answer of Arman Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
  Required:a. If 6,000 units are produced, what is the total amount of fixed manufacturing cost incurred?b. If 6,000 units are produced, what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?c. If 4,000 units are produced, what is the total amount of direct manufacturing cost incurred?d. If 4,000 units are produced, what is the total amount of indirect manufacturing cost incurred?

Arman Corporation's Relevant Range of Activity Is 3,000 Units to 7,000