Dake Corporation's relevant range of activity is 2,000 units to 5,000 units. When it produces and...

Dake Corporation's relevant range of activity is 2,000 units to 5,000 units. When it produces and sells 3,500 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	6.75
Direct labor	$	3.90
Variable manufacturing overhead	$	1.50
Fixed manufacturing overhead	$	4.00
Fixed selling expense	$	1.10
Fixed administrative expense	$	0.80
Sales commissions	$	0.90
Variable administrative expense	$	0.80

For financial reporting purposes, the total amount of product costs incurred to make 3,500 units is closest to:

Expert Solution

Product costs = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead

= (3,500 * $6.75) + (3,500 * $3.9) + (3,500 * $1.5) + (3,500 * $4)

= $56,525

ekkarill92 answered 2 years ago

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