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Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When...

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Accounting

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:
Average
Cost per
Direct materials
Unit
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
\table[[$,6.55],[$,3.50],[$,1.40],[$,2.60],[$,0.70],[$,0.40],[$,1.50],[$,0.45]]
If 3,000 units are produced, the total amount of indirect manufacturing
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:
Average
Cost per
Unit
Direct materials
$6.55
Direct labor
$3.50
Variable manufacturing overhead
$1.40
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
$2.60
$,0.70
$0.40
$1.50
$0.45
If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
$10,400
$4,200
$12,000
$14,600cost incurred is closest to:
$10,400
$4,200
$12,000
$14,600
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