Dake Corporation's relevant range of activity is 4,500 units to 8,500 units. When it produces...
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Dake Corporation's relevant range of activity is 4,500 units to 8,500 units. When it produces and sells 6,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.40 Direct labor $ 3.50 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 2.20 Fixed selling expense $ 0.90 Fixed administrative expense $ 0.60 Sales commissions $ 0.70 Variable administrative expense $ 0.60 If 5,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Multiple Choice $11,000 $14,300 $25,300 $23,100
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