1 answer

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

Question:

Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead FMultiple Choice O $25,300 O $20,900 $13,200 o $7,700

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

Answers

Variable manufacturing overhead per unit = $1.40

Total fixed manufacturing overhead = $13,200

Number of units produced = 5,500

Total variable manufacturing overhead = Number of units produced x Variable manufacturing overhead per unit

= 5,500 x 1.40

= $7,700

Total indirect manufacturing cost = Total variable manufacturing overhead+ Total fixed manufacturing overhead

= 7,700+13,200

= $20,900

The total amount of indirect manufacturing cost is closest to $20,900.

Second option is correct.

Kindly comment if you need further assistance.

Thanks‼!

.

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