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Ouelette Corporations relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5.000 units, its
Multiple Choice Ο $22,800 Ο $25,800 Ο $15,000 Ο $7,800
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A.$22,800.

first let us know the fixed manufacturing overhead portion:

$3.00 *5000 units =>$15,000.

This amount of $15,000 will be the same until 7000 units range of production.

variable manufacturing overhead will be $1.30 per unit till 7000 units range of production.

so the indirect manufacturing cost when 6000 units:

fixed portion + variable portion

=>$15,000 + ($1.30*6000 units)

=>$22,800.

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