Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows:

Dake Corporation's relevant range of activity is 3,200 units to 8,000 units. When it produces and sells 5,600 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	6.55
Direct labor	$	3.50
Variable manufacturing overhead	$	1.30
Fixed manufacturing overhead	$	3.00
Fixed selling expense	$	0.90
Fixed administrative expense	$	0.60
Sales commissions	$	0.70
Variable administrative expense	$	0.60

If 4,600 units are produced, the total amount of direct manufacturing cost incurred is closest to:

rev: 09_26_2017_QC_CS-102616

Multiple Choice

• $46,230

  Correct
• $56,350
• $52,210
• $66,010

Explanation

Direct materials	$	6.55
Direct labor		3.50
Direct manufacturing cost per unit (a)	$	10.05
Number of units produced (b)		4,600
Total direct manufacturing cost (a) × (b)	$	46,230