7..

Faraz Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.

Production volume	5,600 units		6,600 units
Direct materials	$ 82,320		$ 97,020
Direct labor	$ 149,520		$ 176,220
Manufacturing overhead	$ 824,800		$ 847,800

The best estimate of the total cost to manufacture 5,900 units is closest to:

rev: 01_17_2013

$ 1,121,040

$ 1,056,640

$ 1,075,960

$ 1,024,020