Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and...

Transcribed Image Text:

Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows: Average Cost per Unit $ 6.55 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 3.50 $ 1.30 $ 3.00 Fixed selling expense $ 0.90 Fixed administrative expense $ 0.60 Sales commissions: $ 0.70 Variable administrative expense $ 0.60 If 4,600 units are produced, the total amount of direct manufacturing cost incurred is closest to: Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows: Average Cost per Unit $ 6.55 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead $ 3.50 $ 1.30 $ 3.00 Fixed selling expense $ 0.90 Fixed administrative expense $ 0.60 Sales commissions: $ 0.70 Variable administrative expense $ 0.60 If 4,600 units are produced, the total amount of direct manufacturing cost incurred is closest to: