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 fixed manufacturing cost incurred is closest to:
A) $128,250
B) $121,500
C) $148,500
D) $135,000

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 fixed manufacturing cost incurred is closest to:
A) $128,250 
B) $121,500 
C) $148,500 
D) $135,000

Quizplus · Accepted Answer

11ea7761_19a1_ab52_81a5_c5a544032dcf_TB2580_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