Dake Corporation\'s relevant range of activity is 4,100 units to 9,500 units. Wh

Question

Dake Corporation's relevant range of activity is 4,100 units to 9,500 units. When it produces and sells 6,800 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $6.70 $3.80 $1.45 $2.50 $1.05 $0.75 $0.85 $0.75 If 5,800 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Explanation / Answer

Total amount of direct mfg cost = 5800*(6.70+3.80) = $      60,900 Direct mfg cost includes all costs that can be traced to the units of products. It includes direct labor and direct labor.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.