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Dake Corporation's relevant range of activity is 4,900 units to 5,500 units. When it produces and sells 5,200 units, its average costs per unit are

Dake Corporation's relevant range of activity is 4,900 units to 5,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 6.50
Direct labor $ 3.70
Variable manufacturing overhead $ 2.10
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 1.00
Fixed administrative expense $ 0.70
Sales commissions $ 0.80
Variable administrative expense $ 0.70

For financial reporting purposes, the total amount of product costs incurred to make 5,200 units is closest to:

Multiple Choice

  • $79,560

  • $63,960

  • $87,360

  • $15,600

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