26.7k views
4 votes
dake coporation's relevant range of activity 2500 units to 5500 units,when it produces and sells 4000 units

User Iomv
by
8.3k points

1 Answer

5 votes

Answer:

Dake Corporation's relevant range of activity is 2,500 units to 5,500 units. When it produces and sells 4,000 units, its average costs per unit are as follows:

Average Cost per Unit

Direct materials $6.90

Direct labor $2.90

Variable manufacturing overhead $1.65

Fixed manufacturing overhead $2.90

Fixed selling expense $0.95

Fixed administrative expense $0.65

Sales commissions $0.75

Variable administrative expense $0.65

If 3,000 units are produced, the total amount of direct manufacturing cost incurred

User Marcoo
by
7.7k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.