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Home Q & A Board Other Fields Homework Help Business Accounting
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msidhu msidhu
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A year ago

Ouelette 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:

Average Cost per Unit
Direct materials$5.25
Direct labor$4.05
Variable manufacturing overhead$1.30
Fixed manufacturing overhead$3.00
Fixed selling expense$0.70
Fixed administrative expense$0.40
Sales commissions$0.50
Variable administrative expense$0.45

If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:



▸ $15,000

▸ $22,800

▸ $7,800

▸ $25,800
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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evgenomeevgenome
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A year ago
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