Ask Question
17 September, 18:21

Perteet corporation's relevant range of activity is 7,500 units to 14,500 units. when it produces and sells 11,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.60 direct labor $ 3.85 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 3.00 fixed selling expense $ 0.85 fixed administrative expense $ 0.55 sales commissions $ 0.65 variable administrative expense $ 0.70 if 7,000 units are produced, the total amount of manufacturing overhead cost is closest to:

+5
Answers (1)
  1. 17 September, 20:11
    0
    If Perteet corporation produces 7,000 units, the variable manufacturing overhead cost shall be 7,000 units * $1.50 = $10,500

    And fixed manufacturing overhead shall remain same in totality, hence fixed manufacturing overhead cost shall be 11,000 units * $3 = $33,000

    The total amount of manufacturing overhead cost = 10,500+33,000 = $43,500

    Hence, the total amount of manufacturing overhead cost at the level of 7,000 units production shall be $43,500
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Perteet corporation's relevant range of activity is 7,500 units to 14,500 units. when it produces and sells 11,000 units, its average costs ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers