Item 4

Dake Corporation's relevant range of activity is 2,900 units to 7,500 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	$ 3.40
Variable manufacturing overhead	$ 1.25
Fixed manufacturing overhead	$ 3.50
Fixed selling expense	$ 0.85
Fixed administrative expense	$ 0.55
Sales commissions	$ 0.65
Variable administrative expense	$ 0.55

If 4,200 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Multiple Choice

$5,250

$18,200

$23,450

$19,950