Asked by Matthew Mihatov on Jun 04, 2024
Verified
If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
A) $13,500
B) $18,000
C) $12,000
D) $15,000
Fixed Manufacturing Cost
Expenses related to manufacturing that remain constant regardless of the level of production, such as salaries of supervisory staff and depreciation of factory equipment.
Units Produced
The total quantity of items manufactured during a specific period.
- Determine the aggregate sum of incurred fixed manufacturing expenses.
Verified Answer
NM
Noelle MurrayJun 09, 2024
Final Answer :
C
Explanation :
*The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 4,000 units.
Learning Objectives
- Determine the aggregate sum of incurred fixed manufacturing expenses.
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