Dake 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$6.55Direct labor$3.50Variable manufacturing overhead$1.40Fixed manufacturing overhead$2.60Fixed selling expense$0.70Fixed administrative expense$0.40Sales commissions$1.50Variable administrative expense$0.45 For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:
A. $8,100
B. $7,800
C. $4,400
D. $12,200
Answer: D
Business
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