Dake Corporation's relevant range of activity is 3,000 units to 5,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materlals $6.45 Direct labor $ 3.60 Varlable manufacturing overhead $2.05 Fixed manufacturing overhead $ 2.60 Fixed selling expense $.95 Flxed administrative expense $0.65 Sales commlsslons $0.75 Varlable administrative expense S0.65 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Dake Corporation's relevant range of activity is 3,000 units to 5,000 units. When it produces and sells 4,000
units, its average costs per unit are as follows:
Average Cost per Unlt
Direct materlals
$6.45
Direct labor
$ 3.60
Varlable manufacturlng overhead
$2.05
Flxed manufacturing overhead
$ 2.60
Flxed selling expense
$0.95
Flxed administrative expense
$0.65
Sales commlsslons
$0.75
Varlable admlnistrative expense
$065
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
Transcribed Image Text:Dake Corporation's relevant range of activity is 3,000 units to 5,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unlt Direct materlals $6.45 Direct labor $ 3.60 Varlable manufacturlng overhead $2.05 Flxed manufacturing overhead $ 2.60 Flxed selling expense $0.95 Flxed administrative expense $0.65 Sales commlsslons $0.75 Varlable admlnistrative expense $065 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
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