Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $20,500
B) $23,000
C) $18,000
D) $19,250

Question

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $20,500 
B) $23,000 
C) $18,000 
D) $19,250

Quizplus · Accepted Answer

The Answer of Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:
A) $20,500 
B) $23,000 
C) $18,000 
D) $19,250

Rhome Corporation's Relevant Range of Activity Is 2,000 Units to 6,000