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vova2212 [387]
4 years ago
10

Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its a

verage costs per unit are as follows:
Average Cost per Unit
Direct materials $ 7.15
Direct labor $ 3.40
Variable manufacturing overhead $ 1.35
Fixed manufacturing overhead $ 2.80
Fixed selling expense $ 0.70
Fixed administrative expense $ 0.40
Sales commissions $ 0.50
Variable administrative expense $ 0.40

If 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
Business
1 answer:
GuDViN [60]4 years ago
7 0

Answer:

$11,200

Explanation:

The computation of the amount of the total amount of fixed manufacturing cost incurred is shown below:

= Number of units produced and sold × Fixed manufacturing overhead per unit

= 4,000 units × $2.80

= $11,200

By applying the Number of units produced and sold with the Fixed manufacturing overhead per unit we can find out the fixed manufacturing overhead cost

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S2  total is $162,000 + $126,000 = $288,000

S2  $126,000 is allocated 19.7% to P2 or $81000

Under the step-method of cost allocation,

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7 0
3 years ago
Nathan’s Athletic Apparel has 2,000 shares of 5%, $100 par value preferred stock the company issued at the beginning of 2017. Al
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Answer and Explanation:

The computation is shown below:-

Particulars                                   Cumulative       Non Cumulative

Preferred dividends for 2018       $10,000              $10,000

Preferred dividend in

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6 0
3 years ago
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