Rosco Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $5.20 $ 3.75 $1.65 $2.60 $0.50 $0.40 $1.50 $0.50 If 6,000 units are produced, the total amount of direct 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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Rosco Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average
costs per unit are as follows:
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
O $53,700
O $79,200
O $63,600
O $62,700
Average
Cost per Unit
$5.20
$3.75
$ 1.65
$2.60
$0.50
$0.40
$ 1.50
$0.50
<< Previous
Nex
Transcribed Image Text:Rosco Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: O $53,700 O $79,200 O $63,600 O $62,700 Average Cost per Unit $5.20 $3.75 $ 1.65 $2.60 $0.50 $0.40 $ 1.50 $0.50 << Previous Nex
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