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 manufacturing overhead cost is closest to:
A) $20,500
B) $23,000
C) $18,000
D) $19,250

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 manufacturing overhead cost is closest to:
A) $20,500 
B) $23,000 
C) $18,000 
D) $19,250

Quizplus · Accepted Answer

11ea7761_19a3_0aea_81a5_95115ab7605d_TB2580_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