Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit $ 6.50 $ 3.40 $ 1.25 Variable manufacturing overhead Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense Sales commissions $ 0.55 $ 0.65 Variable administrative expense $ 0.55 If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to: Direct materials Direct labor

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows:

 

  Average Cost per Unit
Direct materials $ 6.50
Direct labor $ 3.40
Variable manufacturing overhead $ 1.25
Fixed manufacturing overhead $ 3.50
Fixed selling expense $ 0.85
Fixed administrative expense $ 0.55
Sales commissions $ 0.65
Variable administrative expense $ 0.55

 

If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units,
its average costs per unit are as follows:
Average
Cost per
Unit
$ 6.50
$ 3.40
$ 1.25
Variable manufacturing overhead
Fixed manufacturing overhead
$ 3.50
Fixed selling expense
$ 0.85
Fixed administrative expense
Sales commissions
$ 0.55
$ 0.65
Variable administrative expense
$ 0.55
If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Direct materials
Direct labor
Transcribed Image Text:Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit $ 6.50 $ 3.40 $ 1.25 Variable manufacturing overhead Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense Sales commissions $ 0.55 $ 0.65 Variable administrative expense $ 0.55 If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to: Direct materials Direct labor
Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units,
its average costs per unit are as follows:
Average
Cost per
Unit
$ 6.50
$ 3.40
$ 1.25
Variable manufacturing overhead
Fixed manufacturing overhead
$ 3.50
Fixed selling expense
$ 0.85
Fixed administrative expense
Sales commissions
$ 0.55
$ 0.65
Variable administrative expense
$ 0.55
If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Direct materials
Direct labor
Transcribed Image Text:Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows: Average Cost per Unit $ 6.50 $ 3.40 $ 1.25 Variable manufacturing overhead Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 0.85 Fixed administrative expense Sales commissions $ 0.55 $ 0.65 Variable administrative expense $ 0.55 If 4,200 units are produced, the total amount of direct manufacturing cost incurred is closest to: Direct materials Direct labor
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