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 product costs incurred to make 4,000 units is closest to:

A. $10,400
B. $45,800
C. $60,200
D. $56,200


Answer: D

Business

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