Biology Forums - Study Force

Waldhauser Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$ 6.10
Direct labor	$ 3.45
Variable manufacturing overhead	$ 1.75
Fixed manufacturing overhead	$ 3.30
Fixed selling expense	$ 0.75
Fixed administrative expense	$ 0.60
Sales commissions	$ 1.50
Variable administrative expense	$ 0.45

If 6,000 units are sold, the total variable cost is closest to:

▸ $79,500

▸ $107,400

▸ $67,800

▸ $87,600

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