Meginnis 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$5.20 Direct labor$3.75 Variable manufacturing overhead$1.65 Fixed manufacturing overhead$2.60 Fixed selling expense$0.50 Fixed administrative expense$0.40 Sales commissions$1.50 Variable administrative expense$0.50 If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:
A. $79,200
B. $62,700
C. $63,600
D. $53,700
Answer: D
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