Biology Forums - Study Force

Perteet Corporation's relevant range of activity is 4,800 units to 10,000 units. When it produces and sells 7,400 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$6.70
Direct labor	$3.40
Variable manufacturing overhead	$1.80
Fixed manufacturing overhead	$3.60
Fixed selling expense	$0.50
Fixed administrative expense	$0.20
Sales commissions	$0.30
Variable administrative expense	$0.35

If 5,200 units are produced, the total amount of manufacturing overhead cost is closest to:

▸ $28,080

▸ $44,320

▸ $36,000

▸ $21,320

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