Question

the incremental manuBellucci Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.90 Direct labor $ 3.90 Variable manufacturing overhead $ 1.40 Fixed manufacturing overhead $ 102,850 Sales commissions $ 1.00 Variable administrative expense $ 0.70 Fixed selling and administrative expense $ 37,400 The incremental manufacturing cost that the company will incur if it increases production from 8,500 to 8,501 units is closest to (assume that the increase is within the relevant range):facturing cost that the company will incur

Answer 1

Answer: $12.20

Step-by-step explanation:

Total Manufacturing cost at 8,500 units;

= Direct materials + Direct labor + Variable Manufacturing Overhead + Fixed manufacturing overhead

= (6.9 * 8,500) + ( 3.9 * 8,500) + ( 1.4 * 8,500) + 102,850

= $206,550

Total Manufacturing cost at 8,501 units;

= (6.9 * 8,501) + ( 3.9 * 8,501) + ( 1.4 * 8,501) + 102,850

= $206,562.2‬0

Incremental cost = 206,562.2‬ - 206,550

= $12.20