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Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and ...

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Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and ...

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

Edition: 9^th

Authors: Brewer, Garrison, Noreen

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