Ouelette Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 13

Multiple Choice

Ouelette Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units,its average costs per unit are as follows:
If 6,000 units are produced,the total amount of indirect manufacturing cost incurred is closest to:

• A) $15,000
• B) $22,800
• C) $7,800
• D) $25,800

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Definitions:

Generally Accepted Accounting Practices (GAAP)

A collection of commonly followed accounting rules and standards for financial reporting.

Federal Regulations

Laws established by the federal government to control or govern specific activities, often enforcing standards.

Supply Department

The department within an organization responsible for the procurement and management of goods and services required for its operations.

Hazardous Waste

Waste materials that are dangerous or potentially harmful to human health or the environment.