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A corporation's relevant range of activity is 2,000 units to 8,000 units. When it produces and sells 5,000 units, its average costs per unit are
A corporation's relevant range of activity is 2,000 units to 8,000 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 $4.80 $3.60 $1.45 $2.40 $0.90 $1.40 $1.50 $1.00 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: $79,200 O $50,400 $88.500 $73,500
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