Dake Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:

Average Cost per UnitDirect materials$7.15Direct labor$3.40Variable manufacturing overhead$1.95Fixed manufacturing overhead$3.20Fixed selling expense$0.85Fixed administrative expense$0.55Sales commissions$0.65Variable administrative expense$0.55

If 5,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Multiple Choice

• $62,500
• $78,500
• $63,000
• $52,750