Chapter-Quiz 3 (Cumulative) Help Save &Exit; Submit 2 Dake Corporation\'s releva
ID: 2437101 • Letter: C
Question
Chapter-Quiz 3 (Cumulative) Help Save &Exit; Submit 2 Dake Corporation's relevant range of activity is 2.300 units to 5,500 units. When it produces and sells 3,900 units, its average costs per unit are as follows Direct saterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Pixed selling expense Fixed administrative expense sales c-issions Variable administrative expense Averag0 Cost per Unit $6.80 $4.00 $1.55 $2.50 51.15 50.85 $0.95 s0.85 lf2.900 units are produced, the total amount of indirect manufacturing cost incurred is closest to Muiple Choice 511745 $4 49SExplanation / Answer
1 Total amount of indirect manufacturing costs = (2900*1.55)+(3900*2.5)= $14245 2 Unit variable cost = 744720/8700= $85.6 Total production engineering cost per machine hour = 85.6+(181560/8900)= $106.00