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Business, 28.02.2021 16:40 igocrazy594

Schonhardt Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $7.75
Direct labor $3.20
Variable manufacturing overhead $1.80
Fixed manufacturing overhead $3.30
Fixed selling expense $1.10
Fixed administrative expense $0.80
Sales commissions $0.90
Variable administrative expense $0.80

If 6,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

a. $16,500
b. $16,500
c. $22,000
d. $24,000

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