1. At a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 units, Company P would expect to incur total factory overhead costs of: A. $36,000 B. $34,000 C. $30,000 D. $32,000

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter3: Cost Behavior
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1. At a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs,
including $10,000 in fixed costs. Assuming that this activity is within the relevant range,
if volume increases to 12,000 units, Company P would expect to incur total factory
overhead costs of:
A. $36,000
B. $34,000
C. $30,000
D. $32,000
Transcribed Image Text:1. At a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 units, Company P would expect to incur total factory overhead costs of: A. $36,000 B. $34,000 C. $30,000 D. $32,000
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