FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Dake Corporation's relevant range of activity is 2,200 units to 5,000 units. When it produces and sells 3,600 units, its average costs per unit are as follows:
Average Cost per Unit | |
---|---|
Direct materials | $ 6.85 |
Direct labor | $ 2.80 |
Variable manufacturing |
$ 1.50 |
Fixed manufacturing overhead | $ 3.00 |
Fixed selling expense | $ 0.90 |
Fixed administrative expense | $ 0.60 |
Sales commissions | $ 0.70 |
Variable administrative expense | $ 0.60 |
If 2,600 units are produced, the total amount of indirect
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