AX27912 company is a highly automated manufacturer. At an activity level of 5,200 units, the company's total quality control cost equal $186,000. This amount includes equipment lease cost of $50,000 (all fixed) and manual inspection cost of $62,400 (all variable). The remaining $73,600 of the total quality control cost consists of electronic testing (mixed). At an activity level of 7,200 units, electronic testing cost totals $89,600. Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX27912 company. If 6,000 units are projected for the next period, how much would the total expected quality control cost be?

AX27912 company is a highly automated manufacturer. At an activity level of 5,200 units, the company's total quality control cost equal $186,000. This amount includes equipment lease cost of $50,000 (all fixed) and manual inspection cost of $62,400 (all variable). The remaining $73,600 of the total quality control cost consists of electronic testing (mixed). At an activity level of 7,200 units, electronic testing cost totals $89,600. Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX27912 company. If 6,000 units are projected for the next period, how much would the total expected quality control cost be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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