TB MC Qu. 1-213 (Static) Varela Corporation's relevant range...
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
Unit
Direct materials
$\ 5.95
Direct labor
$\ 3.30
Variable manufacturing overhead
$\ 1.60
Fixed manufacturing overhead
$\ 3.00
Fixed selling expense
$\ 0.50
Fixed administrative expense
$\ 0.40
Sales commissions
$\ 1.50
Variable administrative expense
$\ 0.50
For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:
Multiple Choice
$\ 8,000
