Reference no: EM132529072
Question 1: Dake Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:
Direct materials $ 7.05
Direct labor $ 3.20
Variable manufacturing overhead $ 1.80
Fixed manufacturing overhead $ 3.30 Fixed selling expense $ 1.10
Fixed administrative expense $ 0.80
Sales commissions $ 0.90
Variable administrative expense $ 0.80
For financial reporting purposes, the total amount of product costs incurred to make 5,000 units is closest to
Question 2: Dake Corporation's relevant range of activity is 2,300 units to 5,500 units. When it produces and sells 3,900 units, its average costs per unit are as follows:
Direct materials $ 6.80
Direct labor $ 4.00
Variable manufacturing overhead $ 1.55
Fixed manufacturing overhead $ 2.50
Fixed selling expense $ 1.15
Fixed administrative expense $ 0.85
Sales commissions $ 0.95
Variable administrative expense $ 0.85
If 2,900 units are produced, the total amount of direct manufacturing cost incurred is closest to
Question 3: Dake Corporation's relevant range of activity is 2,300 units to 6,500 units. When it produces and sells 4,400 units, its average costs per unit are as follows:
Direct materials $ 6.40
Direct labor $ 3.20
Variable manufacturing overhead $ 1.15
Fixed manufacturing overhead $ 3.00
Fixed selling expense $ 0.75
Fixed administrative expense $ 0.45
Sales commissions $ 0.55
Variable administrative expense $ 0.45
If 3,400 units are produced, the total amount of indirect manufacturing cost incurred is closest to