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

11ea7761_199e_ec26_81a5_592dd34d5e9d_TB2580_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