Dake Corporation's relevant range of activity is 2,000 units to 5,000 units. When it produces and sells 3,500 units, its average costs per unit are as follows:

Average Cost per UnitDirect materials$6.75Direct labor$3.90Variable manufacturing overhead$1.50Fixed manufacturing overhead$4.00Fixed selling expense$1.10Fixed administrative expense$0.80Sales commissions$0.90Variable administrative expense$0.80

If 2,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Multiple Choice

• $3,750
• $14,000
• $17,750
• $13,750