Question

Kesterson Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.30 Direct labor $ 3.30 Variable manufacturing overhead $ 1.25 Fixed manufacturing overhead $ 15,000 Sales commissions $ 1.30 Variable administrative expense $ 0.60 Fixed selling and administrative expense $ 4,200 If 7,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Answer 1

Total indirect manufacturing cost= $23,750

Step-by-step explanation:

Giving the following information:

Variable manufacturing overhead $1.25

Fixed manufacturing overhead $ 15,000

Production= 7,000 units are produced

The indirect manufacturing cost is the sum of the total fixed overhead and total variable cost:

Total indirect manufacturing cost= 15,000 + 7,000*1.25

Total indirect manufacturing cost= $23,750