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 For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
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 For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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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 |
$ 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 |
For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
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