At a Volume of 8,000 Units, Pwerson Company Incurred $32,000

Multiple Choice

At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $12,000 in fixed costs. If volume increases to 9,000 units and both 8,000 units and 9,000 units are within the relevant range, then the company would expect to incur total factory overhead costs of:

A) $22,500
B) $32,000
C) $34,500
D) $20,000