npany is a highly äutomatēd manufacturer. activity level company's total quality control cost equal $230,000. This amount includes equipment lease cost all fixed) and manual inspection cost of $72,000 (all variable). The remaining $100,000 of the total quality control cost consists of electronic testing (mixed). At an activity level of electronic testing cost totals $120,000. the relevant range includes all of the activity levels mentioned in this problem for the AX51793 company. s are projected for the next period, how much would the total expected quality control cost be? Choice $274,000 $247,600 $252,000 $166,000
npany is a highly äutomatēd manufacturer. activity level company's total quality control cost equal $230,000. This amount includes equipment lease cost all fixed) and manual inspection cost of $72,000 (all variable). The remaining $100,000 of the total quality control cost consists of electronic testing (mixed). At an activity level of electronic testing cost totals $120,000. the relevant range includes all of the activity levels mentioned in this problem for the AX51793 company. s are projected for the next period, how much would the total expected quality control cost be? Choice $274,000 $247,600 $252,000 $166,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:AX51793 company is a highly automated manufacturer. At an activity level of 6,000 units, the company's total quality control cost equal $230,000. This amount includes equipment lease cost
of $58,000 (all fixed) and manual inspection cost of $72,000 (all variable). The remaining $100,000 of the total quality control cost consists of electronic testing (mixed). At an activity level of
8,000 units, electronic testing cost totals $120,000.
Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX51793 company.
If 6,800 units are projected for the next period, how much would the total expected quality control cost be?
Multiple Choice
$274,000
$247,600
$252,000
$166,000
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