Biology Forums - Study Force

Dake Corporation's relevant range of activity is 2,800 units to 6,000 units. When it produces and sells 4,400 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$ 6.95
Direct labor	$ 3.00
Variable manufacturing overhead	$ 1.70
Fixed manufacturing overhead	$ 2.50
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 4,400 units is closest to:

▸ $62,260

▸ $51,260

▸ $66,660

▸ $11,000

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