Ouelette 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: AverageCost per UnitDirect materials$5.25 Direct labor$4.05 Variable manufacturing overhead$1.30 Fixed manufacturing overhead$3.00 Fixed selling expense$0.70 Fixed administrative expense$0.40 Sales commissions$0.50 Variable administrative expense$0.45 If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:
A. $25,800
B. $22,800
C. $15,000
D. $7,800
Answer: B
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