Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $4,200
B) $10,400
C) $14,600
D) $12,000

Question

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A) $4,200 
B) $10,400 
C) $14,600 
D) $12,000

Quizplus · Accepted Answer

11eacbfc_c7a4_92e7_8ffe_63e326c1e115_TB7552_00 *The average fixed manufacturing overhead cost per unit was determined by dividing the total fixed manufacturing overhead cost by 4,000 units.

Dake Corporation's Relevant Range of Activity Is 2,000 Units to 6,000