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phoebe.lou phoebe.lou
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A year ago

Dake Corporation's relevant range of activity is 2,600 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials$ 6.45
Direct labor$ 3.30
Variable manufacturing overhead$ 1.20
Fixed manufacturing overhead$ 2.50
Fixed selling expense$ 0.80
Fixed administrative expense$ 0.50
Sales commissions$ 0.60
Variable administrative expense$ 0.50

If 3,800 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

▸ $4,560

▸ $12,000

▸ $16,560

▸ $14,060
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
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HCho0HCho0
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A year ago
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phoebe.lou Author
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