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IgorC [24]
3 years ago
7

Dake Corporation's relevant range of activity is 5,200 units to 6,000 units. When it produces and sells 5,600 units, its average

costs per unit are as follows: Average Cost per Unit Direct materials $ 6.55 Direct labor $ 3.80 Variable manufacturing overhead $ 2.15 Fixed manufacturing overhead $ 3.50 Fixed selling expense $ 1.05 Fixed administrative expense $ 0.75 Sales commissions $ 0.85 Variable administrative expense $ 0.75 If 5,400 units are produced, the total amount of direct manufacturing cost incurred is closest to:
Business
1 answer:
arlik [135]3 years ago
6 0

Answer:

Total direct manufacturing cost= $55,890

Explanation:

Giving the following information:

5,600 units:

Average Cost per Unit Direct materials $ 6.55

Direct labor $ 3.80

The manufacturing overhead is an<u> indirect cost.</u> It is allocated based on a predetermined rate. <u>We will take into account only the direct materials and direct labor.</u>

<u>For 5,400 units:</u>

Total direct manufacturing cost= 5,400*(6.55 + 3.8)

Total direct manufacturing cost= $55,890

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3 years ago
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8 0
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3 0
2 years ago
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vovikov84 [41]

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