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

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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

business accounting

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Answer 1

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Answer #1

Only variable manufacturing costs increase when output is increased. Fixed costs as the name suggests ,remain fixed.

= Direct Materials 6.90 + Direct Labor 3.70 + Variable moh 1.30

= 11.90

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Answer 2

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