Question

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...

Kesterson Corporation has provided the following information:

Cost per Unit Cost per Period
Direct materials $ 6.75
Direct labor $ 3.40
Variable manufacturing overhead $ 1.70
Fixed manufacturing overhead $ 25,200
Sales commissions $ 1.30
Variable administrative expense $ 0.30
Fixed selling and administrative expense $ 6,300

If 11,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

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Answer #1
Answer:$44,750
Explanation:Indirect Manufacturing cost is = Manufacturing overheads







Variable Cost quad(11500^(**)1.70)$19,550

Fixed Manufacturing overhead$25,200

The total amount of indirect manufacturing cost$44,750


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