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linv08 linv08
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A year ago

Schonhardt Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces and sells 4,400 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials$ 7.10
Direct labor$ 3.20
Variable manufacturing overhead$ 1.15
Fixed manufacturing overhead$ 3.00
Fixed selling expense$ 0.75
Fixed administrative expense$ 0.45
Sales commissions$ 0.55
Variable administrative expense$ 0.45

If 5,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:



▸ $18,040

▸ $16,500

▸ $14,300

▸ $13,200
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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Aquarius1Aquarius1
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A year ago
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