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Schonhardt Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.40 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.55 Sales commissions $ 0.65 Variable administrative expense $ 0.55 If 6,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $23,400  $22,620  $18,200  $18,460

Schonhardt Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.40 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.55 Sales commissions $ 0.65 Variable administrative expense $ 0.55 If 6,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: Multiple Choice $23,400  $22,620  $18,200  $18,460

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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Schonhardt Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 7.20 Direct labor $ 3.40 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense $ 0.55 Sales commissions $ 0.65 Variable administrative expense $ 0.55 If 6,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Multiple Choice

$23,400 

$22,620 

$18,200 

$18,460

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