Discover a wealth of knowledge and get your questions answered on IDNLearn.com. Find reliable solutions to your questions quickly and accurately with help from our dedicated community of experts.

If 2,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Sagot :

Answer: $14,550

Explanation:

Within a certain activity range, the fixed cost remains the same so in this activity range of $2,200 to $5,000, the fixed overhead cost will remain the same:

= 3 * 3,600 units

= $10,800

Variable overhead costs will vary by units:

= 2,500 * 1.50

= $3,750

Total cost = 10,800 + 3,750

= $14,550

View image Parrain