Schonhardt Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its average costs per unit are as follows:
Average
Cost per Unit
Direct materials $ 7.60
Direct labor $ 2.90
Variable manufacturing overhead $ 1.65
Fixed manufacturing overhead $ 2.90
Fixed selling expense $ 0.95
Fixed administrative expense $ 0.65
Sales commissions $ 0.75
Variable administrative expense $ 0.65
If 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to:
a $16,800
b $11,400
c $11,600
d $15,400
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