Dake Corporation's relevant range of activity is 2,900 units to 7,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $ 6.50

Direct labor $ 3.40

Variable manufacturing overhead $ 1.25

Fixed manufacturing overhead $ 3.50

Fixed selling expense $ 0.85

Fixed administrative expense $ 0.55

Sales commissions $ 0.65

Variable administrative expense $ 0.55

For financial reporting purposes, the total amount of product costs incurred to make 5,200 units is closest to:

Multiple Choice

$18,200

$76,180

$82,420

$57,980

Answer rating: 100% (QA)

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