Answered

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

Sagot :

Parrain

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
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