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Meginnis Corporations relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows Average Cost per Unit $5.20 $3.75 2 ) 04.0437 Direct materials Direct labor Variable manufacturing overhead $1.65 Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $2.6e $e.se 0.40 $1.50 $0.50
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Answer #1

Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced

= ($5.20 + $3.75) * 6,000 units

= $8.95 * 6,000

= $53,700

$53,700 is the correct answer.

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