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