Perteet Corporation's relevant range of activity is 6300 units to 12,500 units. When it produces and sells 9400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.65 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 2.90 Fixed selling expense $ 0.65 Fixed administrative expense $ 0.35 Sales commissions $ 0.45 Variable administrative expense $ 0.50 If 6800 units are produced, the total amount of manufacturing overhead cost is closest to: $49,890 $28,520 $38,820 $22,010
Perteet Corporation's relevant range of activity is 6300 units to 12,500 units. When it produces and sells 9400 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.65 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 2.90 Fixed selling expense $ 0.65 Fixed administrative expense $ 0.35 Sales commissions $ 0.45 Variable administrative expense $ 0.50 If 6800 units are produced, the total amount of manufacturing overhead cost is closest to: $49,890 $28,520 $38,820 $22,010
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Perteet Corporation's relevant range of activity is 6300 units to 12,500 units. When it produces and sells 9400 units, its average costs per unit are as follows:
If 6800 units are produced, the total amount of manufacturing overhead cost is closest to:
| Average Cost per Unit |
|||
| Direct materials | $ | 7.20 | |
| Direct labor | $ | 3.65 | |
| Variable manufacturing |
$ | 1.70 | |
| Fixed manufacturing overhead | $ | 2.90 | |
| Fixed selling expense | $ | 0.65 | |
| Fixed administrative expense | $ | 0.35 | |
| Sales commissions | $ | 0.45 | |
| Variable administrative expense | $ | 0.50 |
|
$49,890
|
||
|
$28,520
|
||
|
$38,820
|
||
|
$22,010
|
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