Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials………………………………………………...........….$ 5.50

Direct labor……………………………………………………................$ 3.90

Variable manufacturing overhead………………………………..$ 130

Fixed manufacturing overhead………………………………...$ 13.50

Fixed selling expense………………………………....................$ 2.25

Fixed administrative expense……………………………….......$ 1.80

Sales commissions………………………………........................$ 0.50

Variable administrative expense………………………………...$ 0.45

If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

$128,250

$135,000

$148,500

$121,500

Answer rating: 100% (QA)

b 135000 Fixed manufacturing co... View the full answer