Dake Corporation’s relevant range of activity is 2,000 units to 6,000 units. Whe
ID: 2537947 • Letter: D
Question
Dake Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, it’s average costs per unit are as follows:Direct Materials $6.55 Direct Labor $3.50 Variable Manufacturing overhead $1.40 Fixed Manufactiring overhead $2.60 Fixed Selling expense $0.70 Fixed administrative expense $0.40 Sales commissions $1.50 Variable administrative expense $0.45
If 3000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Dake Corporation’s relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, it’s average costs per unit are as follows:
Direct Materials $6.55 Direct Labor $3.50 Variable Manufacturing overhead $1.40 Fixed Manufactiring overhead $2.60 Fixed Selling expense $0.70 Fixed administrative expense $0.40 Sales commissions $1.50 Variable administrative expense $0.45
If 3000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: r Chapters 1-5 6 Saved Help Seve & Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 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 $6.55 $3.5e $1.48 $2.60 $e.70 $e.40 $1.58 $0.45 113,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to . Multiple Choice $4.200 4c, 25 Next >
Explanation / Answer
Total Amount of indirect Manufacturing Cost = (3000 * Variable Manufacturing Cost)+(3000*Fixed Manufacturing Cost)
= (3000 * 1.4) + (3000 * 2.4)
= $ 4,200 + $ 7,800
= $ 12,000
Indirect Manufacturing Cost means cost releted to manufacturing other than direct matarial and direct labour
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