Question

Dake Corporation's relevant range of activity is 3,500 units to 8,500 units. When it produces and sells 6,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 6,000 units is closest to:

Answer 1

$89,100

Step-by-step explanation:

Direct material = $6.6

Direct labor = $3.6

Variable manufacturing overheads = $1.35

Fixed manufacturing overheads = $3.3

Total production cost per unit = $6.6 + $3.6 + $1.35 + $3.3

Total production cost per unit = $14.85

Total amount of product cost incurred for 6000 unit:

= $14.85 * 6,000 units

= $89,100