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drw92 drw92
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A year ago

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:

Average Cost per Unit
Direct materials$ 5.40
Direct labor$ 3.55
Variable manufacturing overhead$ 1.70
Fixed manufacturing overhead$ 3.00
Fixed selling expense$ 0.60
Fixed administrative expense$ 0.40
Sales commissions$ 1.00
Variable administrative expense$ 0.40

If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:



▸ $13,500

▸ $18,000

▸ $12,000

▸ $15,000
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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ndedrickndedrick
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