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Question(s) / Instruction(s):

Anderton Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

Production volume                         4,000 units 6,000 units

Direct materials                             $38.50 per unit $38.50 per unit

Direct labor                                    $37.80 per unit $37.80 per unit

Manufacturing overhead                  $87.80 per unit $65.20 per unit

The best estimate of the total monthly fixed manufacturing cost is:

a)            $391,200

b)            $271,200

c)            $656,400

d)            $351,200

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