Koala Enterprises Inc. relevant range of activity is 4,800 units to 6,000 units. When it...
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Accounting
Koala Enterprises Inc. relevant range of activity is 4,800 units to 6,000 units. When it produces and sells 5,400 units, its average costs per unit are as follows:
Average Cost Per Unit
Direct materials
$
8.05
Direct labor
$
3.80
Variable manufacturing overhead
$
2.10
Fixed manufacturing overhead
$
3.50
Fixed selling expense
$
1.40
Fixed administrative expense
$
1.10
Sales commissions
$
1.20
Variable administrative expense
$
1.10
If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
Multiple Choice:
A. $18,900
B. $26,460
C. $22,680
D. $32,400
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