Answer:
Total cost= $34,500
Explanation:
Giving the following information:
At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $12,000 in fixed costs.
<u>Because the 9,000 units are between the relevant range, the fixed costs will remain constant.</u>
First, we need to calculate the unitary variable overhead cost:
Unitary overhead= 20,000/8,000= $2.5 per unit
Now, we can calculate the total cost of 9,000 units:
Total cost= 9,000*2.5 + 12,000= $34,500
