Question: Extron, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs

Extron, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units?

A. $485,000.

B. $491,000.

C. $494,000.

D. $500,000.

E. Some other amount not listed above.

The answer is B. Can you please show work? Thanks!

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Peyton Manufacturing has the following data: Work-in-process inventory, January 1, 20x8 Work-in-process inventory, December 31, 20x8 Conversion costs during the year $60,000 65,500 432,000 points 02...

A company observed a decrease in the cost per unit. All other things being equal, which of the following is most likely true? The company is studying a variable cost, and total volume has increased....

con 4 et ered Fletcher, Inc. disposes of under-or overapplied overhead at year-end as an adjustment to cost of goods sold. Prior to disposal, the firm reported cost of goods sold of $590,000 in a...

Question 5 of 50 Question 9 Points Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs...

15. Bolman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the...

Bowman, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $1,000,000 and the cost...

Organize, Inc. has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $1,200,000 and the...

Organize, Inc. has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $1,600,000 and the...

Bolman Inc has only variable costs and fixed costs. A review of the company's records disclosed that when 200,000 units were produced, fixed manufacturing costs amounted to $800,000 and the cost per...

1 Assets 2 Cash 3 Accounts Receivable 4 Irnventory 5 Current Assets 6 Property & Equipment 7 Goodwill 8 Total Assets 67,971 5,100 7.805 80,876 45,500 20,000 146,376 10 Liabilities 11 Short Term Debt...

General Mills is a manufacturer of food products, such as Lucky Charms cereal, Pillsbury crescent rolls, and Green Giant vegetables. The following items were presented in the companys financial...

Pharaoh co . is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the residents to be exposed to highly toxic chemicals from it's plant....

3) Brac and Dettol signed a memorandum of understanding (MoU) to deliver hygienic services to Bangladesh's most vulnerable expectant women. i) Between bearable, equitable and viable, where does this...

The quality of the argumentation

The status rule: We tend to have more confidence in information presented by someone who has a relatively high status and rank in society than by someone who hasnt.

The spatial rule: The closer spatial proximity we have to an event, the more importance we will attach to it.