Axe Manufacturers produces a product with the following manufacturing cost hierarchy for its only current...
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Accounting
Axe Manufacturers produces a product with the following manufacturing cost hierarchy for its only current product.
| Activity Level | Cost |
|
| Unit | 10 | per unit |
| Batch | 250 | per batch |
| Product | 5,000 | per year |
| Facility | 25,000 | per year |
Next year Axe plans to manufacture 25,000 units of product, in batches of 250 units. Axes predicted manufacturing cost for next year is:
Select one:
A. $330,000
B. $305,000
C. $750,000
D. $735,500
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