Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 $ 3.90 $ 1.30 $ 13.50 $ 2.25 $ 1.80 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions $ 0.50 $ 0.45 Variable administrative expense If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $128,250 $135,000 $121,500 $148,500

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its
average costs per unit are as follows:
Average
Cost per
Unit
Direct materials
$ 5.50
$ 3.90
$ 1.30
$ 13.50
$ 2.25
$ 1.80
$ 0.50
$ 0.45
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
Multiple Choice
$128,250
$135,000
$121,500
$148,500
Transcribed Image Text:Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.50 $ 3.90 $ 1.30 $ 13.50 $ 2.25 $ 1.80 $ 0.50 $ 0.45 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $128,250 $135,000 $121,500 $148,500
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