Dake Corporation's relevant range of activity is 2,600 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.45 Direct labor $ 3.30 Variable manufacturing overhead $ 1.20 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 0.80 Fixed administrative expense $ 0.50 Sales commissions $ 0.60 Variable administrative expense $ 0.50 For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
Dake Corporation's relevant range of activity is 2,600 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.45 Direct labor $ 3.30 Variable manufacturing overhead $ 1.20 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 0.80 Fixed administrative expense $ 0.50 Sales commissions $ 0.60 Variable administrative expense $ 0.50 For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dake Corporation's relevant range of activity is 2,600 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows:
| Average Cost per Unit | |
|---|---|
| Direct materials | $ 6.45 |
| Direct labor | $ 3.30 |
| Variable manufacturing |
$ 1.20 |
| Fixed manufacturing overhead | $ 2.50 |
| Fixed selling expense | $ 0.80 |
| Fixed administrative expense | $ 0.50 |
| Sales commissions | $ 0.60 |
| Variable administrative expense | $ 0.50 |
For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
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