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Problem - Dake Corporation's relevant range of activity is 4,900 units to 5,500 units. When it produces and sells 5,200 units, its average costs per unit are as follows:
Direct materials $6.50
Direct labor $3.70
Variable manufacturing overhead $2.10
Fixed manufacturing overhead $3.00
Fixed selling expense $1.00
Fixed administrative expense $0.70
Sales commissions $0.80
Variable administrative expense $0.70
Required - If 4,200 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A. $24,420
B. $15,600
C. $8,820
D. $21,420
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