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Dake Corporation's relevant range of activity is 4,100 units to 9,500 units. When it produces and sells 6,800 units, its average costs per unit are as follows:


Average Cost per Unit
Direct materials $ 6.70
Direct labor $ 3.80
Variable manufacturing overhead $ 1.45
Fixed manufacturing overhead $ 2.50
Fixed selling expense $ 1.05
Fixed administrative expense $ 0.75
Sales commissions $ 0.85
Variable administrative expense $ 0.75


For financial reporting purposes, the total amount of product costs incurred to make 6,800 units is closest to:

Respuesta :

MasterElodin
We are given different costs in producing the product. In order to determine the total cost, we must get the sum of the total direct/variable costs (for 6,800 units) and the fixed costs.
So,
($6.70 + $3.80 + $1.45 + $0.85 + $0.75)(6,800) + $1.05 + $0.75
= $92,141.80
The total production cost incurred if 6,800 units are produced is $92,141.80.

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