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Faraz Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production Volume: 5,000 units ....... 6,000 units
Direct Materials: $70,500 .... $84,600
Direct Labor: $130,500 ..... $156,600
Manufacturing overhead: $802,000 ..... $824,400
The best estimate of the total cost to manufacture 5,300 units is closer to:
A) $1,002,230
B) $1,021,780
C) $1,063,180
D) $941,280
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