Suman Corporation's relevant range of activity is 6,900 units to 13,500 units. When it produces and sells 10,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials S 7.40 Direct labor $ 3.75 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 3.30 Fixed selling expense $ 0.75 Fixed administrative expense $ 0.45 Sales commissions $ 0.55 Variable administrative expense $ 0.60 If 7,400 units are produced, the total amount of manufacturing overhead cost is closest to:

Suman Corporation's relevant range of activity is 6,900 units to 13,500 units. When it produces and sells 10,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials S 7.40 Direct labor $ 3.75 Variable manufacturing overhead $ 1.90 Fixed manufacturing overhead $ 3.30 Fixed selling expense $ 0.75 Fixed administrative expense $ 0.45 Sales commissions $ 0.55 Variable administrative expense $ 0.60 If 7,400 units are produced, the total amount of manufacturing overhead cost is closest to:

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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