Varela Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  Average Cost per UnitDirect materials$5.95Direct labor$3.30Variable manufacturing overhead$1.60Fixed manufacturing overhead$3.00Fixed selling expense$0.50Fixed administrative expense$0.40Sales commissions$1.50Variable administrative expense$0.50 For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

A. $55,400
B. $59,400
C. $12,000
D. $43,400


Answer: A

Business

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