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12 Dake Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces...

12

Dake Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces and sells 4,400 units, its average costs per unit are as follows:

Average Cost per Unit
Direct materials $ 6.40
Direct labor $ 3.20
Variable manufacturing overhead $ 1.15
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 0.75
Fixed administrative expense $ 0.45
Sales commissions $ 0.55
Variable administrative expense $ 0.45

If 3,400 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

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Answer #1
Variable manufacturing overhead 3910 =3400*1.15
Fixed manufacturing overhead 13200 =4400*3.00
Total amount of indirect manufacturing cost 17110
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