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 $ 7.15
Direct labor $ 4.20
Variable manufacturing overhead $ 1.55
Fixed manufacturing overhead $ 18,900
Sales commissions $ 2.10
Variable administrative expense $ 0.40
Fixed selling and administrative expense $ 4,900

If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

1 0
Add a comment Improve this question Transcribed image text
✔ Recommended Answer
Answer #1

Answer

  • Indirect manufacturing cost = Variable manufacturing overhead + Fixed manufacturing overhead
    = (7000 units x $ 1.55) + $ 18900
    = 10850 + 18900
    = $ 29,750 Answer
  • Direct material and direct labor = Direct manufacturing cost (not indirect)
  • Sales expenses and Administrative expense (fixed and variable) are not ‘manufacturing’ cost at all.
Add a comment
Know the answer?
Add Answer to:
Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • t2 Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials...

    t2 Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.50 Variable manufacturing overhead $ 1.75 Fixed manufacturing overhead $ 27,500 Sales commissions $ 1.40 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 7,700 If 12,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Multiple Choice $21,000 $53,300 $48,500 $27,500

  • 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:

  • 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   $   7.00         Direct labor   $   3.90         Variable manufacturing overhead   $   1.40         Fixed manufacturing overhead         $   13,200 Sales commissions   $   1.80         Variable administrative expense   $   0.80         Fixed selling and administrative expense         $   6,600 If 5,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

  • 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 $ 6.60 Direct labor $ 3.90 Variable manufacturing overhead $ 1.55 Fixed manufacturing overhead $ 27,900 Sales commissions $ 1.90 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 7,200 The incremental manufacturing cost that the company will incur if it increases production from 9,000 to 9,001 units is closest to:

  • Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing...

    Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost Cost per per Period Unit $6.40 $3.50 $1.35 $18,900 $1.50 $0.80 $ 6,300 if 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

  • 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 $ 7.20 Direct labor $ 4.30 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 21,000 Sales commissions $ 2.20 Variable administrative expense $ 0.50 Fixed selling and administrative expense $ 6,000 The incremental manufacturing cost that the company will incur if it increases production from 7,500 to 7,501 units is closest to: Multiple Choice: A. $13.10 B. $15.90 C. $19.40 D. $16.40

  • 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 $ 6.90 Direct labor $ 3.70 Variable manufacturing overhead $ 1.30 Fixed manufacturing overhead $ 9,900 Sales commissions $ 1.60 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 3,600 The incremental manufacturing cost that the company will incur if it increases production from 4,500 to 4,501 units is closest to: Multiple Choice $11.90 $14.10 $17.10 $14.70

  • Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing...

    Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Cost Cost per per Period Unit $7.00 $3.90 $1.40 $13,200 $1.80 $0.80 $ 6,600 If 5,500 units are produced, the total amount of indirect manufacturing cost incurred is closest to: Multiple Choice O $25,300 O $20,900 $13,200 o $7,700

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

    Learned Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 5.50 Direct labor $ 4.50 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 25,800 Sales commissions $ 0.70 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 7,200 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred...

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

    Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.15 Direct labor $ 3.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 16,200 Sales commissions $ 0.60 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 6,600 If the selling price is $21.70 per unit, the contribution margin per unit sold is closest to:

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT