Baker Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total cost to manufacture 10,800 units is closest to: (Do not round intermediate calculations.) $1,908,580 $1,861,960 $1,768,720 $1,838,650
| 9500 units | 11000 units | Change in volume | Change in cost | Unit Variable cost | Fixed cost | |
| Direct materials | 575700 | 666600 | 1500 | 90900 | 60.6 | 0 |
| Direct labor | 156750 | 181500 | 1500 | 24750 | 16.5 | 0 |
| Manufacturing overhead | 1009000 | 1032400 | 1500 | 23400 | 15.6 | 860800 |
| 10800 units: | ||||||
| Direct materials | 654480 | |||||
| Direct labor | 178200 | |||||
| Manufacturing overhead | 1029280 | |||||
| Total cost | 1861960 | |||||
| Option 2 is correct |
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