Schonhardt Corporation\'s relevant range of activity is 2,200 units to 5,000 uni

Question

Schonhardt Corporation's relevant range of activity is 2,200 units to 5,000 units. When it produces and sells 3,600 units, its average costs per unit are as follows Average Cost per Unit $7.55 $2.80 Direct materials Direct labor Variable manufacturing overhead $1.50 Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $0.60 $3.00 $0.90 $0.60 $0.70 If 4,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to

Explanation / Answer

The total amount of fixed manufactuing overhead for 4000 units = 3600*3 = $10800 Option 4 is correct

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