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Reed Oil has a relevant range of activity that is 8,400 units to 16,000 units. When it produces and sells 12,200 units, its average costs

Reed Oil has a relevant range of activity that is 8,400 units to 16,000 units. When it produces and sells 12,200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $7.80 Direct labor $4.00 Variable manufacturing overhead $1.80 Fixed manufacturing overhead $3.60 Fixed selling expense $0.70 Fixed administrative expense $0.40 Sales commissions $0.50 Variable administrative expense $0.55 If 9,800 units are produced, the total amount of manufacturing overhead cost is closest to:

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