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Managerial Accounting

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Moderate

Using Mixed Costs for Darby Company

MGRACT-NMQLL7

In February, Darby Company produced 14,000 units and had total direct material costs of \$102,900. In March, Darby Company produced 15,500 units and had total direct material costs of \$113,925.

Based on these two observations, if Darby plans to produce 14,800 units in April, direct material costs in April should be:

A

$\$102,900$

B

$\$103,600$

C

$\$108,780$

D

$\$113,925$