Question
Dake Corporation's relevant range of activity is 3,100 units to 6,500 units. When it produces and sells 4,800 units, its average costs per unit are
Dake Corporation's relevant range of activity is 3,100 units to 6,500 units. When it produces and sells 4,800 units, its average costs per unit are as follows:
| Average Cost per Unit | ||
| Direct materials | $ | 7.00 |
| Direct labor | $ | 3.10 |
| Variable manufacturing overhead | $ | 1.75 |
| Fixed manufacturing overhead | $ | 3.00 |
| Fixed selling expense | $ | 1.05 |
| Fixed administrative expense | $ | 0.75 |
| Sales commissions | $ | 0.85 |
| Variable administrative expense | $ | 0.75 |
If 3,800 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
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Financial Accounting and Reporting
Authors: Barry Elliott, Jamie Elliott
14th Edition
978-0273744535, 273744445, 273744534, 978-0273744443
