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Compute the total amount of indirect manufacturing cost

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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

Reference no: EM132472167

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