Rhome Corporation's Relevant Range of Activity Is 2,000 Units to 6,000

question 245

Multiple Choice

Rhome Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

-If 5,000 units are produced,the total amount of manufacturing overhead cost is closest to:

• A) $20,500
• B) $23,000
• C) $18,000
• D) $19,250

---

Definitions:

Strike Rights

The legal rights granted to workers to cease work in order to protest against working conditions, policies, or other labor disputes without fear of retaliation.

Binding Arbitration Clause

A contractual agreement to submit disputes to an impartial third party for a decision that is final and enforceable, often used in labor agreements.

Shop Stewards

Elected union representatives in the workplace tasked with safeguarding the rights of the workers and acting as a liaison between the workforce and the management.

Company Employees

Individuals employed by a company or organization, typically distinguished from contractors, consultants, and other non-permanent staff.